LORELAI: I don’t know. Um, how ‘bout this table with it’s unobstructed westward view of the wide cosmopolitan expansive Klump Street?
Lorelai seems to be saying that Luke’s is on Klump Street. I presumed that the street that Luke’s is on is Main Street – Luke mentioned Main Street, and it looks like the main street of town, as it’s where major businesses are, like the market. If there is a bigger, more important Main Street somewhere, we never see it, which seems odd.
It’s just possible she means that you can see the street which crosses it, as Luke’s is on a corner, and that this is Klump Street. If so, that’s the street Weston Bakery is on. Klump Street is the location of the giant slinky.
In fact, due to the frosted glass, curtains and blinds on the diner windows, customers don’t actually seem to have a great view of anything much from the tables at Luke’s.
The Annotated Gilmore Girls 