Okay so Lucifer obviously upset his sky-daddy, is demoted from being an angel permanently, is cast down to rule an entire sector of the afterlife called Hell which we come to know where all damned souls go after they die.
What is the logic of God practically awarding Lucifer an entire realm for him to rule on his own and nearly contest God’s power?
That’s like imprisoning someone to home confinement when they live in a mansion.
The concept of hell does not appear in scripture, it is a Hellenist addition. The concept of Hades ruling the underworld was preserved as “Satan and Hell” as Judeo-Christian terminology spread and was co-opted by Hellenist cults.
In actual scripture, “Satan” is a being who stands before gods throne slinging accusations and slanders against god’s people. The concept of hell does not exist at all, and every time you see the word in an english Bible it is an intentional mistranslation from one of a handful of other words that have more specific and nuanced meanings, usually “the grave.”
Jesus observed and taught a form of pharisaic Judaism that believed in an eventual “resurrection and judgement of all people.” The righteous would be given a fresh start in a new creation but everyone else would be destroyed by cleansing fire, dead and gone forever. This “burned away like trash” imagery eventually infected the traditional Hellenist imagery of a “cold dark” underworld and turned it into a place of flaming, volcanic, undying torment.