The same situation, from different perspectives, yields different results and interests it represents.
From the point of view of the Jade Emperor Zhu Houji, as the nominal Emperor of Heaven, everyone should be his subjects, and thus the authority of the Heavenly Court should be held in his own hands.
However, from the perspective of the various Imperial Honors, many Star Lords, Heavenly Monarchs, and All Gods, they believe the Jade Emperor Zhu Houji should simply be a good Holy Heavenly Emperor. The idea of him scheming for their authority and harming their interests is unacceptable to them.
Furthermore, many True Immortals believe that it is best for the Holy Heavenly Emperor to simply be the flag of the Heavenly Court, to reign without involving himself in any affairs of heaven and earth, leaving everything to be managed by them.