Babylon is destroyed. Her demise is different from that of the Antichrist and the False Prophet, who are thrown into the Lake of Fire. That's because the Harlot of Babylon is a human construction, comprised of human folly, greed, perversion, power and corruption. Babylon exists because of the world's wealth, but the events of the 7th Trumpet will destroy anything that remains of human wealth and power.
Babylon is not a demonic entity like the other beasts in Revelation, who are eventually thrown into the Lake of Fire. When Babylon is destroyed, she is simply gone, and only the fallout remains. Most people rejoice at the demise of Babylon, but those who got rich off of her endless greed are distressed.