Here's what I know about the other iterations of the band Rory Llewellyn joined... (remember that many bits on the cartoon were extracted from recent real life) This episode debuted in February 24, 1988, which means it was produced sometime in late 1987. Someone in the "Creative Barn" of the cartoon most likely knew of another Nirvana band (most likely where they took the name and idea) started in United Kingdom in 1965 and rebooted in 1985. I remember there was another Nirvana band in Puerto Rico in the early-mid '80s, predating he US band. There's also another one Wikipedia mentions in Yugoslavia (actually Zagreb, Croatia which is near the hometown of Giselle (Danse) Dvorak's parents) established in the 1970's. OTOH, Kurt Cobain's band was created about the same time as the production of the episode, both in 1987.
Well being at boot camp did sorta toughen him up a bit but he still didn't like it there. So I say he then made the right choice ditching it to go with that rock band.
It would have made it more interesting if they added a younger version of one of the G.I .Joe members training with Riot in his past when he was in the army, even they were just drawn in the background.