I believe God is cruel because I see all of the misery and the confusion that he's perfectly capable of relieving that he chooses not to.
My belief though, is that he makes something good and beautiful come out of our mistakes.
I forgot to ask if your religious beliefs or lack of religious beliefs ever cause you misery?
If you belong to a system of beliefs where you believe that those who don't belong to your religion go to a place of eternal torment, I cannot fathom how such beliefs could make you happy.
My beliefs make me happy and cause me suffering and grief also because that's reality and that's how it works.
I believe in a God who is just. Not just indiscriminately sending people to their eternal doom, but judging them according to their level of knowledge and what they had done both good and evil. So that they are rewarded for good and punished for evil. Yet, He is merciful and mercy rejoices against judgment. Unfortunately, ultimately, some people will definitely end up in bad places.
View all that misery and everything else you previously mentioned in the world as symptoms of the war going on in the spiritual realm between good and evil. Satan and his angels fought ... they continue to fight and the world is right now under a diabolic satanic conspiracy against the kingdom of heaven. It's been going on since the beginning and involves both angels and humans as well as other creatures. So the darkness has engulfed the whole world. I believe at the top the world is controlled by a luciferian high priesthood who answer to lucifer himself and his fallen angels.
But anyway, this world is not perfect because of this constant warfare and conspiracy on earth and in heaven. But, the thing that God is doing is amazing because creation is on going. It's not finished yet. If it were finished then maybe we could judge it as it is now. But, when God is finished we'll see how perfect it is. We haven't reached the 7th day of creation yet when God rested from ALL His work. God is already there because He's eternal and the future is present, but for us the 7th day is coming when we can rest with God also. Until then the battle rages on. The scripture tells us to overcome evil with good.
Why did God make it this way since He knew all things beforehand? To establish a reality of goodness. Good couldn't exist without evil first existing. Gold is purified in the fire and even though it's melted again and again it is only purer and purer. So that all the wisdom of God could be tried and so that's beauty would be known and established. Every question answered all arguments stilled. Every eventuality played out and shown to be good or bad. The good appreciated forever. Therefore evil exists temporarily until the 7th day comes when it will be gone. Yet, goodness will go on eternally exalted because evil once existed to try it. Without evil once existing: it would not be so. And the eternal city the new Jerusalem would not be. Everything will be tried with fire before it's added to the great eternal work of God: the new Jerusalem. Even the 12 gates of the city gigantic pearls are not created without irritation to the oyster. When she is finished; then God will rest in her as the 7th day will have come.
(*God speaking of the new Jerusalem*) This is my rest for ever: here will I dwell; for I have desired it. (Psalm 132:14)
Even in our language we know that every river has a "river bed". So, God will be a River of Life in the new Jerusalem and He will rest in His love in His river bed.
Isaiah 33:21
But there the glorious Lord will be unto us a place of broad rivers and streams; wherein shall go no galley with oars, neither shall gallant ship pass thereby.
The Lord thy God in the midst of thee is mighty; he will save, he will rejoice over thee with joy; he will rest in his love, he will joy over thee with singing. (Zeph 3:17)
Everything beautiful and good must come through the pain as even a child is born with birth pangs. The whole world travails in birth pangs waiting for the manifestation of the sons of God. Job was attacked ruthlessly by satan so that he could be as gold tried in the furnace; and although he did not know it then: Job suffered for all of us who can benefit from his book. If he had not suffered then there would be no book of Job. Just so, if there was no suffering in the world now; then there could be no mercy shown. There could be no grace or forgiveness received or given without sin. So that from every wound possible for Satan to inflict on this creation from it can come eternal beauty and ecstasy; through the overflowing grace of God.
For, behold, I create new heavens and a new earth: and the former shall not be remembered, nor come into mind. But be ye glad and rejoice for ever in that which I create: for, behold, I create Jerusalem a rejoicing, and her people a joy. And I will rejoice in Jerusalem, and joy in my people: and the voice of weeping shall be no more heard in her, nor the voice of crying. (Isaiah 65:17-19)