"the way you compare the two is by judging how long it would take light to travel through that portion of space"
Yes, according to how we measure time in our created sphere. This means we think if time were the same (or even applicable) outside our bubble, that it would limit all things the same way.
"From a different point of reference, what one person measured as time would appear to be space and vice versa, but the distances would still be equal."
Yes, this is how it would work if God, and all creation were in the dome, or bubble, that God made for us.
"We are ruled by time in the same way that we are ruled by space, meaning that we will always inhabit it"
Well for Christians we can look forward to a 'time' where there will be 'time no more'! And as already mentioned, God isn't bound by time now. So we will not always be ruled by it.
"showing that time moves at slightly different rates in different places"
Yes, and they are travelling in our bubble. I think of it like a gigantic geodesic dome, covering our solar system. In it, we are bound by time.
"Nature is trying very hard to make us succeed, but nature does not depend on us. We are not the only experiment." Buckminster Fuller