You are confusing reconciliation with restoration. Colossians 1:20 speaks about reconciliation, not restoration. Only people can be reconciled to each other or to God.
Colossians 1:18-20 He is also head of the body, the church; and He is the beginning, the firstborn from the dead, so that He Himself will come to have first place in everything. For it was the Father’s good pleasure for all the fullness to dwell in Him, and through Him to reconcile all things to Himself, having made peace through the blood of His cross; through Him, I say, whether things on earth or things in heaven.
the church . . .
Paul focuses on "the church," "the body," of Christ, which is the subject of this paragraph. The subject matter informs our understanding of this paragraph.
the fulness . . .
In Greek, the word for "fulness" is
pleroma, a term Paul the Apostle uses to indicate "every believer, both Jew and Gentile, who ever existed throughout time." Not only are Peter, Paul, and John members of the church, the fulness, so are David, Abraham, Enoch and other believers who existed in ancient times.
in him . . .
Paul uses this term to indicate the profound connection between Jesus and those in his kingdom of light -- the pleroma. They all share a unity of purpose, knowledge and character with Jesus. To be "in him" or "in Christ" is a beautiful expression of devotion and shared understanding.
reconcile all things . . .
The phrase "ta panta" in Greek is commonly translated as "all things," but this translation can be misleading. The word for "all" is in plural and neuter form, which refers to "all the members of the fullness" in the context of the church. Human beings are naturally at odds with God, but those who are "in Christ" are no longer enemies of God. They have made peace with God and no longer oppose Him. Instead, they worship, devote themselves, and serve God.
To "reconcile" a check book is to bring the checkbook record into agreement with the bank record. But the New Testament usage is focused on the enmity between God and man -- not checkbooks.