Kind of you to point out that's actually an escape clause.
I think you have a false idea about the nature and character of God. I think the source of this is twofold—which you’ve pointed out: 1) the portrayal of God in the Old Testament, and 2) The problem of pain.
First, the people in the Old Testament were not as morally advanced as we are today so we cannot judge them by our standards. Hence God’s interactions with them are a reflection of their moral state, not His. They didn’t value human life or human rights as we do, so it would not have been prepared to live God’s higher law. Take Roman civilization for example. It was considered very advanced for its time, yet they did things that we consider barbaric, such as feeding people to lions. I don’t think that they could’ve handled the laws that Jesus gave, that’s why they were given the 10 Commandments (instead of the more advanced laws that Christ gave). Also, because the Old Testament has come down through so many generations, there may have been things lost in translation or misinterpreted.
Secondly, the problem of pain (CS Lewis wrote a whole book on the subject of the same title) essentially asserts that “If God was a loving caring God, why would He allow such terrible suffering to happen?” I get this. Genocide is horrible…along with a whole list of atrocities caused by man’s inhumanity to man. And then there’s the pain and suffering that comes seemingly randomly: disease, mental illness, acts of nature, accidents,…the list goes on. But what would happen if God stepped in and allowed those things to happen only to people that deserved it? We would be compelled to be good, not because we loved God and wanted to keep his commandments, but because we didn’t want bad things to happen to us. That would take away 1) The opportunity for those challenges to strengthen us and make us better people, and 2) The true freedom of choice to choose to have faith in God and live accordingly--thereby proving to God our faithfulness.
God wants us to know His true character: “And this is life eternal, that they might know thee the only true God, and Jesus Christ, whom thou hast sent.” (John 17:3) To know God’s true character, He asks us to keep His commandments: “If any man will do his will, he shall know of the doctrine, whether it be of God, or whether I speak of myself.” (John 7:17) As we keep His commandments, we draw closer to God, and feel in a very real way His love for not only us, but for the entire human race—bringing us both joy and peace: “If ye keep my commandments, ye shall abide in my love; even as I have kept my Father’s commandments, and abide in his love. These things have I spoken unto you, that my joy might remain in you, and that your joy might be full.” (John 15:10-11) “These things I have spoken unto you, that in me ye might have peace. In the world ye shall have tribulation: but be of good cheer; I have overcome the world.” (John 16:33)
So much of suffering seems so unfair, and we probably won’t understand reasons for it until we get to the other side. But seeing the suffering of others also gives us the opportunity to do what we can to alleviate it, to demonstrate that we are Christians—that we do believe that the two greatest laws are to love God, and to love our neighbors.