Well, actually, to be Biblically correct, it might make a little more sense if you understood that the 1000-year reign is going to be by the "144,000" ON THE EARTH while Jesus is on the earth too.
That's probably the crux of your issue right there and something I agrue, which is how come 144K are up in heaven with everybody else on the earth? I mean, how can they king-priest well that way? Turns out they will be on the earth.
And the other point is that, indeed, God could read the minds and hearts and make his own decisions, but that leaves us out of the equation compared to self-discovery and free moral agency. It goes along with: Why did God test mankind anyway? Why didn't he just kill Satan and start all over? etc. etc.
But I agree with the WTS to a degree that actually EXPERIENCING something makes you more sympathetic, and Jesus coming into human form as a perfect man at the first coming and then as an imperfect man at the second coming reflect that. Thus God chose to let these judges decide where to draw the line within the basic guidelines and thus in this way more mercy might be shown.
But perhaps more importantly, these kings are also "priests". Don't forget what the MILLENNIUM is about. These people will have to be prepared for Satan's final test. So the 144K are there to give individual attention to the world of mankind surviving Armageddon and the children born during the millennium to help them on a human basis to understand God's requirements. So in that sense, they are a blessing. They are dedicated to saving as many of mankind as possible. That's the focus.
Finally, they don't up to heaven even after the millennium and after Satan is destroyed, but are still here during JUDGMENT DAY which happens after the millennium. That's when the dead, both good and bad, come back to be judged. And God allows the humans to judge. Obviously this has advantages. An ex drug addict or alcoholic will be a lot more understanding that a holy roller who despises drink and makeup and everything else, right? Plus these are "reformed" individuals; those who have had these trials and took steps to overcome them and so they can help others do the same.
And on yet another plane, these 144K who become the "Bride of Christ" are replacing the fallen "covering cherub" who used to be Christ's wife in heaven and in the position of being God's temple. This fallen angel is depicted as one of the two "covering cherubs" on top of the Ark of the Covenant. The other angel is the archangel, Michael who later became Jesus Christ. After Judgment Day, the 144K receive spiritual bodies and their heavenly reward after all their hard work on the earth for 1000 years plus Judgment Day and they become Christ's special Bride Class among the angels.
And....per some other comments...since the content of the 144,000 is notably symbolic (i.e. all men, all virgins, all Jews, specifically 12,000 from each tribe), then likely the actual number might be symbolic as well. My belief is that it is some multiple of 144K, probably x 10, since 10 is an earthly number.
But it can't be too large otherwise there would be more king-priests than people to rule over them.
JCanon