Now, what is the point of the 1000 year reign here? Is it to prove that Christ can do something that Satan could never do (i.e. real world peace?)
The millennial reign is the kingdom that was promised to Israel.
Jeremiah 31:31-33 Behold, the days come, saith the LORD, that I will
make a new covenant with the house of Israel, and with the house of
Judah: Not according to the covenant that I made with their fathers
in the day that I took them by the hand to bring them out of the land
of Egypt; which my covenant they brake, although I was an husband unto
them, saith the LORD: But this shall be the covenant that I will
make with the house of Israel; After those days, saith the LORD, I
will put my law in their inward parts, and write it in their hearts;
and will be their God, and they shall be my people.
This kingdom was offered to Israel at the time of Christ, but most of Israel was not interested. A faithful remnant of Israel will finally accept the kingdom and all that was promised to Israel will be fulfilled.
Revelation 1:7 Behold, he cometh with clouds; and every eye shall see
him, and they also which pierced him: and all kindreds of the earth
shall wail because of him. Even so, Amen.
If Israel had accepted Jesus as King when he first came the last 2,000 years would have had no war, people would have had much longer lives, and even nature would have been less hostile.
Romans 11:15 For if the casting away of them be the reconciling of
the world, what shall the receiving of them be, but life from the
At the end of time we will have laid out before us the testimony of all human history. We will have had every possible form of government including a planet wide rule by God himself. What we will see is that no matter under what conditions, all human endeavor apart from God is sinful and corrupt. Without God we are hopeless.
The millennium fulfills the promises to Israel as well as serves to demonstrate our need of God.