Whilst most of 'The Gunner's Dream' is metaphor, and the rest of the album from which is comes is indirectly about the Falklands war
and sundry official post-WW2 conflicts, the line referring to an imaginary paradise where 'maniacs
don't blow holes in bandsmen
by remote control' is a reference to the IRA
's nail-bombings at Hyde Park
(which was remote-controlled) and the bandstand at Regent's Park
on the 2nd of August
The explosion at Hyde Park killed four cavalrymen and injured 22 assorted guards and civilians, whilst the one at Regent's Park killed six bandsmen and injured 28 people. Seven horses were also killed, pictures of which probably did more to repulse people than the thought of the human deaths.
The line about dead children probably refers to the Ballykelly bomb of December the 6th, 1982, in which a bar was blown up with the loss of 11 British soldiers and six civilians, including two children.