With the earthquake and tsunami in Japan in mind, how can anyone believe that s/he exists? What more evidence do we need before we start using a little critical thinking on the whole notion of a lovable God? Or maybe the Japanese people have not prayed enough, or maybe not to the right God?
I think it is a common mistake to equate God being loving and compassionate with God being constantly willing to intercede in the daily existence of the universe to break its rules.
For whatever reason, this is the universe that God created. For whatever reason, it was this model of universe that God felt would be successful, fulfill what He wanted from Creation, and nurture self-aware reasoning beings of free will. And part of the way this universe works is that chaos, entropy, and evolution are forces of nature. And sometimes those forces cause harm or destruction to living beings, merely as a part of their natural function in the universe.
But I don't think that that indicates some sort of directed intentional action on God's part in the case of natural disasters.
Could one, in theory, make the argument that God, being omnipotent, could perhaps have designed the universe differently, in such a way as no living beings would ever come to harm? Probably. But to me, that seems a relatively useless question to raise, in that, despite His omnipotence, God did not do so: He made this universe, and all the ways it works.
I think natural disasters are just part of being alive in the universe. It doesn't make them pleasant, or their effects positive in our lives. But it's how the planet works. And for God to leap in every day to stop any kind of mishap that might harm or kill someone would be self-defeating, in that God could have created another universe, but clearly chose this one, and presumably there are reasons why that should be true.
Perhaps entropy and chaos and evolution are somehow tied into free will. Or perhaps a life without challenges would never force us to progress. Or perhaps tragedy is supposed to teach us something. Or perhaps we are supposed to make our peace with the necessity of chaos and randomness. Or perhaps there are reasons we will never understand until we perhaps advance to the point of one day truly beginning to comprehend how and why universes are created, or why humans are the way they are, or other such questions we cannot know the answers to right now.
But regardless, I think that the necessity of forces in the universe that may sometimes result in the suffering of living beings, God may accept as an inevitable price for this universe being as it is, but I don't think He always has to like it. I think that despite natural disasters and the evil that humans do to one another, God loves us, and feels great compassion for us. And I think sometimes He lends subtle assistance where He feels He can do so without disturbing the natural balances of the universe He's created. But sometimes He can't, and doesn't. And that is not only the price we pay for living in this universe, but the price He pays also.