Is the reason why there's a place called "Osaka" is because that place deals with osake meaning Japanese drink made from fermented rice?

You have it wrong. Osaka and sake have nothing to do with each other and are not even written the same.

Osaka written 大阪 literally means "great or large hill". The "saka" in Osaka is not the same as "sake" which is written 酒 and comes from the Chinese word "jiǔ" meaning an alcoholic drink; any alcoholic drink in Chinese is a JIU.

No. It isn't osake, it's just sake. And that's their rice wine. Osaka, the city, was named after Osaka Castle which was the first thing built in the 16th century where the city grew. No clue why the castle was called Osaka.

Osaka 大阪 means "large hill" or "slope"
Sake 酒, - fermented rice wine - sounds similar but as you can see the kanji are totally different and the two names are not related.

No. The resemblance is a mere coincidence.

I Would not be surprised........sounds oishiii