In the thousand year kingdom, will not Jesus be ruling with a rod of iron?

Psalms 2:6 Yet have I set my king upon my holy hill of Zion.

  7 I will declare the decree: the LORD hath said unto me, Thou art my Son; this day have I begotten thee.

  8 Ask of me, and I shall give thee the heathen for thine inheritance, and the uttermost parts of the earth for thy possession.

  9 Thou shalt break them with a rod of iron; thou shalt dash them in pieces like a potter’s vessel.

Also shown in:

Revelation 12:5 And she brought forth a man child, who was to rule all nations with a rod of iron: and her child was caught up unto God, and to his throne.

Clearly, rebellion will not be tolerated in the kingdom.

So, for the very end of the thousand year kingdom, does Jesus allow Satan a short time in order to incite a massive rebellion, and to gather the rebels together?

Revelation 20:7 And when the thousand years are expired, Satan shall be loosed out of his prison,

  8 And shall go out to deceive the nations which are in the four quarters of the earth, Gog and Magog, to gather them together to battle: the number of whom is as the sand of the sea.

The, at that point, instead using the rod of iron, fire from heaven will be used?

Revelation 20:9 And they went up on the breadth of the earth, and compassed the camp of the saints about, and the beloved city: and fire came down from God out of heaven, and devoured them.