Thanks for your response, this is how discussions go, BY ASKING QUESTIONS. yes, true it can be rendered principality. but one must understand how it is used in context. example, Psalms 136:23 "Who remembered us in our low estate: for his mercy endureth for ever". if one would read the context it is stating the "condition" they was in. now Jude again, Jude 1:5 "I will therefore put you in remembrance, though ye once knew this, how that the Lord, having saved the people out of the land of Egypt, afterward destroyed them that believed not. 6 And the angels which kept not their first estate, but left their own habitation, he hath reserved in everlasting chains under darkness unto the judgment of the great day. 7 Even as Sodom and Gomorrha, and the cities about them in like manner, giving themselves over to fornication, and going after strange flesh, are set forth for an example, suffering the vengeance of eternal fire. 8 Likewise also these filthy dreamers defile the flesh, despise dominion, and speak evil of dignities.
if you would read the commentaries, example Gill's: Or "principality"; that holy, honourable, and happy condition, in which they were created", and some fell from. now, Pool's commentary Kept not their first estate; in which they were created, their original excellency, truth, holiness, purity, holiness & purity is a condition. again which they they fell from. now Barnes's commentary do a good job in using your definition of "principality" in the condition from which they fell. Verse 6. And the angels which kept not their first estate. A second case denoting that the wicked would be punished. 2Pet 2:4. The word rendered estate (αρχην) is, in the margin, principality. The word properly means, beginning, commencement; and then that which surpasses others, which is first, etc., in point of rank and honour; or pre-eminence, priority, precedence, princedom. Here it refers to the rank and dignity which the angels had in heaven. That rank or pre-eminence they did not keep, but fell from it.
in all three cases in Jude here, God is dealing with a condition of sin, by giving example of the past, (REMEMBER in verse 5) of A. his own people Israel who sinned in Egypt, and B. the angels who sinned in heaven. and C. the gentiles at large, (not his own) in the example of Sodom and Gomorrha. see, what Jude is doing is showing how God deals with sin, a CONDITION. hoped this helped.