Your quest about the meaning of qodesh in Daniel 8:14 is not new for me. I know the position of Herb Kersten. Actually, I found him on the web and then we had a good email dialog. Herb agrees with my position on nitsdaq, but I do not remember if I have discussed with him about the qodesh. The Austrian Professor Martin Proebstle, in his massive PhD thesis (stil unpublished) studies the term qodesh also. It is probably the largest linguistic investigation on Daniel 8:9-14 in the SDA history.It is easy to recognize the large semantic field of the term qodesh (= holiness, anything holy, holy things), which is especially used in the Pentateuch. Most frequently the term is used adjectivally (holy); but in various cases, contextually noticeable, the term means ”holy place” (sanctuary or sanctum). This last meaning is used to designate the whole sanctuary, or the first apartment (when the second one is called qodesh qodashim ”most holy”), and even the second appartment (if the first one is called ohel mo‘ed ”tent of meeting”, as it is the case in Leviticus 16, which I think it is also reflected in Hebrews 9).
It is known that qodesh and miqdash are synonyms in many instances:
Regarding Daniel 8:14, I’m inclined to understand qodesh as a synonym for miqdash. Daniel uses synonyms in the same context (e.g. hazon and mar’eh for vision/prophecy). This is my reason:
|A||v. 10 host / stars, trampled underfoot||v. 13 qodesh and host – trampled underfoot||A’|
|v. 11 His residence, the miqdash was ”cast down” (despised)||
v. 14 qodesh will be vindicated
Thus, if the qodesh of v. 13 refers to the miqdash of v. 11, as it appears from the text, then the qodesh to be vindicated in v. 14 is the miqdash-residence of v. 11, that is the qodesh of v. 13. Actually, there is evidence in Da 9:26 that he used the term qodesh for sanctuary / temple, as a synonym for miqdash (Dan 9:17; 11:31).
However, when we compare the answer in v. 14 to the question of v. 13, it becomes clear that qodesh in v. 14 stands, as a synecdoche for the whole belongings of the sanctuary (its altar for tamid, its host, its Captain, its truth), that is all those things that had been made injustice in v. 13.
Thus, practically, my solution comes close to Herb’s, but linguistically and literary, I have another justification. Most important, I believe that the vindication (justification) of the qodesh is the equivalent of the judgment and vindication in Dan 7:22 and in Rev 6:9:11 – see the same question