For the LORD has chosen Zion; he has desired it for his dwelling place: "This is my resting place forever; here I will dwell, for I have desired it."
The Lord chose to be with Israel in a visible way through the temple worship in Jerusalem. In that sense He chose Zion as a resting place. Until that time, the worship of GOd had been mobile, conducted in a portable sanctuary in the tent of meeting known as the tabernacle.
But David had a vision for a permanent temple for worshipping Yahweh on Zion in Jerusalem. He drew up the plans. Solomon built the magnificent structure. It was a wonder of the ancient world. And God blessed the commitment with a promise to forever rest there.
Of course, this doesn't in any way diminish God's universal presence. There is today no temple on Zion. But God's promise is to "be there" still, even as He is everywhere. And He still deserves all the best that we can give Him in our worship. We must give Him His holy desire.