Yes, Rome was the first thing I thought of. But I thought of the Vatican. The two legs of iron are Rome and Byzantine Empire with the Roman Catholics and Orthodox church.
Yes, He rebuilds as the Author and Finisher of our faith. Unlike the Old Covenant of laws (the ministry of death) they had to keep with a sin nature, the New Covenant (the ministry of the Spirit) 2 Cor. 3, is produced in us by Jesus. He removes the sin unto death from our nature as told to us in Ezekiel 36. Look here:
33 ‘Thus says the Lord God: “On the day that I cleanse you from all your iniquities, I will also enable you to dwell in the cities, and the ruins shall be rebuilt. 34 The desolate land shall be tilled instead of lying desolate in the sight of all who pass by. 35 So they will say, ‘This land that was desolate has become like the garden of Eden; and the wasted, desolate, and ruined cities are now fortified and inhabited.’ 36 Then the nations which are left all around you shall know that I, the Lord, have rebuilt the ruined places and planted what was desolate. I, the Lord, have spoken it, and I will do it.”
I wonder if there will be an actual rebuilding of the temple, or if it is still symbolic of us being His handiwork and the places He will inhabit as we abide in Him and He in us.