For follow-up discussion and general commentary on the topic. Comments are sorted chronologically.
Larry Truelove
The "city that rules the world" avoids the possibility of hyperbole. Given the use of "whole world" literary language used elsewhere in scripture, there is no reason it must interpreted globally. Scripture uses similar language in non-global language. Israel-Jerusalem persecuted the saints throughout their history. Jesus pointed that out in the last few verses of Matt 23.
Isreal-Jerusalem was called a whore so many times in scripture, it would have been hard to consider any other possibilities to the first century Jew.