Another comment (but too long to fit): Have you tried making sense out of "Morita equivalence" in this setting? The condition for fully-faithful is clear. For groupoids, $\varphi:H \to G$ is essentially-surjective if $t \circ pr_1:G_1 \times_{G_0} H_0 \to G_0$ is a cover (or if you want something stronger, submersion, in relation to your other question), but this really just says that for every object $x$ of $G_0$ there is an arrow $f(y) \to x$ in $G$- SINCE $G$ is a groupoid, this is the same as essentially surjective, but for categories, it is not. I believe that this problem is related to the non-principality you have been running into.
However, I don't think that this is a real problem. You can generalize my answer to THIS question: Torsors for monoidsTorsors for monoids, to show that torsors for a category object $C$ are the same as torsors for its groupoid of all invertible elements, $\tilde C$ (as objects, but they have different morphisms). But, this means that the stack associated to $C$ should satisfy that any map $T \to C$ with $T$ an object of your site, that the underlying object of its associated $C$-torsor ($\tilde C$-torsor) should be the weak pullback $T \times_{C} C_0$, which is the same as $T \times_{\tilde C} C_0$.
The upshot is, you don't WANT principality, but only principality with respect to the underlying groupoid. But, you do want to allow different morphisms between bibundles than before.