Your question is slightly confusing. Do you want to use each..do (ruby) to do the filtering. Or do you want to use a sql query. Here is how you can let the ruby process do the filtering
refined list = @initial_matches.map { |listing|
listing.out_of_bounds? ? nil : listing
}.comact
If you wanted to use sql you could simply add additional sql (maybe a sub-select) it into your Listing.find_by_sql call.
If you want to do as you say in your comment.
WHERE location1.distance_from(location2, :units=>:miles)
You are mixing ruby (location1.distance_from(location2, :units=>:miles)) and sql (WHERE X > 50). This is difficult, but not impossible.
However, if you have to do the distance calculation in ruby already, why not do the filtering there as well. So in the spirit of my first example.
listing2 = some_location_to_filter_by
@refined_list = @initial_matches.map { |listing|
listing.distance_from(listing2) > 50 ? nil : listing
}.compact
This will iterate over all listings, keeping only those that are further than 50 from some predetermined listing.
EDIT: If this logic is done in the controller you need to assign to @refined_list instead of refined_list since only controller instance variables (as opposed to local ones) are accessible to the view.