I went to the Luton game when we were banned and there were hundreds of other Blues there. There was plenty of singing in the pub before and in the ground. I must admit I don't remember the song but I suspect it was sung there.
HOWEVER
I was told it's "rebirth" was at a Prestwich and Whitefield branch do, the funeral of one of the members, where the above version "If you drink, you will die..." etc was sung.
It then caught on when we were in divisions 1 and 2 in the 96-98 era, obviously when we were stood at shitty grounds. I remember it had well caught on by the time we played away at Chesterfield. I remember some used to sing "WE're in Milan watching City in the champions league...we're not really here"
It then kind of morphed into a song used to describe how surreal it was supporting City. The best - and it should have been the final ever - version of it was belted out about 2 minutes before the final whistle at Ewood Park when we got promoted. It had kind of been turned on its head and meant that we couldn't believe we were back so quickly.
Now it's a silly, meaningless song in my opinion.