In what sense could it be said that Jerusalem reigned over the kings of the earth?
Again, Scripture spells out that "sense" perfectly.
She,
by Divine right and covenant, was appointed as the head of all nations (Deut 26:19; Deut 15:6; Deut 28:1,10-13),
and the gentile kings recognized God's dwelling was at Jerusalem with the Hebrews (1 Ki 10:24; Luke 11:31; Ezra 1:2; Dan 2:47, 3:28-29, 4:1-3, 4:17, 4:34-37; Ezra 1; Ezra 4-7; Ezra 7:15,23).
The Governor of all nations (Ps. 22:28)
lived in Jerusalem in his House (Ez 7:15,23)
Indeed, all kings receive their power to rule from that Divine King (Rom 13:1-2,6; John 19:11; 1 Pet 2:13-14,17; Ez 1:2; Dan 1:1-2; Dan 2:20-21; Dan 2:37-38; Dan 2:47, Dan 3:28-29; Dan 4:1-3,17,34-37.).
In what sense do the above scripures NOT mean what they say?
But two verses earlier, in Rev 17:16, we read that kings of the earth hate the harlot, make her desolate, and burn her with fire. This is more consistent with Jerusalem in 70 AD
Indeed,, Jerusalem was also famous for becoming The Harlot City -- an unfaithful spouse to her King (Isa 1:21; Jer 3:6-10; Ez 16:37-39). She had become "drunk with the blood of the saints" (Rev 17:6; Rev 18:20,24; 1 Thess 2:15-16) as Christ had prophesied she would (Mt 23:33-37; Lk 11:50-51).
Sadly, the "great city," Jerusalem (Rev 11:8), had fallen, and had become the habitation of demons and a cage of every unclean and hateful bird (Rev 18:2). The Queen City Jerusalem (Rev 18:7/Lam1:1), which had been great among the nations (Lam 1:1), had become a widow (Rev 18:7/Lam1:1). And She, having become an unfaithful Harlot to God, was thus "burned with fire" (Rev 18:8/17:16) as her covenant law demanded for her (Lev 21:9). The blood of all the apostles and prophets who she famously killed (Matt 23:33-36; Matt 21:34-39; Lk 13:33; Acts 7:52; 1 Thess 2:15-16; Lk 11:47; Neh 9:26; 1 Ki 19:14) was avenged upon her (Matt 23:33-37; Rev 16:6; Rev 18:20,24; 1 Thess 2:15-16).