
Morrissey named "THE QUEEN IS DEAD" after a chapter title in the Hubert Selby Jr. novel "LAST EXIT TO BROOKLYN".
Brooklyn is the largest of the five boroughs that comprise the city of New York.
Correspondingly, Princess Diana was killed in an underpass heading for the "EXIT" to the "AVENUE de NEW YORK".
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"LAST EXIT TO BROOKLYN", the novel from which Morrissey took the title "THE QUEEN IS DEAD", begins with this Bible verse:
"For that
which befalleth the sons of men befalleth beasts;
even one thing befalleth them:
as the one dieth, so dieth the other;
yea, they have all one breath;
so that a man hath no preeminence above a beast:
for all is vanity."
ECCLESIASTES 3:19
- LAST EXIT TO BROOKLYN, Opening to Chapter 1.
Correspondingly, on her family's Althorp estate, Princess Diana actually wound up being buried in a pet cemetery:
"I cannot
believe Earl Spencer could be so heartless as to bury his sister in a dog burial
ground.
It is a desecration."
- Maudie Pendrey, former Althorp
housekeeper.

Source: http://www.time.com/time/daily/special/diana/timeline/junaug98/07_07.html
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While it is true that she was officially a Princess, (not "The Queen"), it is equally true that Diana famously wished to be remembered as a "Queen of people's hearts":

Source: http://news.bbc.co.uk/onthisday/hi/witness/november/20/newsid_4407000/4407752.stm