Exactly. That's why Jesus can and is fulfilling the prophecy from His throne in heaven. He is exercising kingly dominion over Israel (and the rest of the nations). He doesn't need a man-made throne.
This makes me wonder if you understand the premillennial viewpoint. In that model based on literal fulfillents, there must be an earthly reign of a Davidic Kingdom.
Certainly, it could be many other things. It could be in NYCity from the FoxNews tower, but it isn't.
It's Jerusalem, King in Davidic Line, earth, 1000 years.