According to premillenial view, What is the point of the Millenium reign?

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 dead?

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.

It's possible that 1 Corinthians 15:24-28 is the reason:

Then comes the end, when he delivers the kingdom to God the Father after destroying every rule and every authority and power.

For he must reign until he has put all his enemies under his feet.

The last enemy to be destroyed is death.

For “God has put all things in subjection under his feet.” But when it says, “all things are put in subjection,” it is plain that he is excepted who put all things in subjection under him.

When all things are subjected to him, then the Son himself will also be subjected to him who put all things in subjection under him, that God may be all in all. So the extra 1000 years is to continue working among His people in order to perfect or train their surrender to Jesus in a manner suitable to Him before He hands it all over to the Father.

In Psalms 2:10-12, God is giving instructions to His kings. This passage takes place when God has "set My King on My holy hill of Zion" (Psalms 2:6), after the return of Christ and when He has set up His rulers, which is during the Millennium:

Now therefore, O kings, be wise; be warned, O rulers of the earth.

Serve the LORD with fear, and rejoice with trembling.

Kiss the Son, lest he be angry, and you perish in the way, for his wrath is quickly kindled. Blessed are all who take refuge in him.

The thousand-year rule = further training in submission and obedience.

There are two main purposes to the millenial reign:

First, to show the world that the true problem isn't the devil (since he will locked away for 1000 years) but rather, the real problem is our evil hearts. Under the perfect and utopian rulership of Jesus, people will still choose to rebel and hate Him and wage war against Him.

Second, to prepare the earth for the coming of the Father. The Father doesn't come to earth until the end of the 1,000 years.