God could have created the universe and his human creations any way he wanted to. There is one way he could have done it and it would have been the far better way. That would be to have made his human creations perfect sinless beings where they are incapable of sinning. They would not have the option to sin. This would not be taking away their free will and I am going to explain.
If you had someone who worked at McDonalds and they had some horrible item on that menu which would be an option that a customer could choose, that item does not belong and should be removed from the menu. Removing this item would not take away the customer's free will. The customer can still freely choose any of the other good items on that menu.
Why have that item on the menu in the first place then? If it's to teach a lesson for wrongdoing, then I think this is absurd and asinine and I will also explain. If you had a patient and the life lesson to be learned is to avoid cancer, then avoiding cancer is what is important. Therefore, there would be no reason to inflict cancer upon this patient or to give him/her the capacity to be inflicted with cancer.
In that same sense, it would be asinine and absurd for a God to endow the capacity for sin upon his human creations just so that they can learn to not sin when avoiding sin was what was important to begin with. That is no different than giving a patient cancer or giving him/her the capacity to be inflicted with cancer just so that he/she can learn how important it was for him/her to avoid cancer.
Therefore, I think it is cruel and unloving for a God to bestow the capacity for sin upon his human creations since this is what is resulting in them going to hell, being punished, etc. Many people are blind and accept God's actions and judgments as holy, righteous, etc. But God's moral nature should be judged on the basis of how you would judge the moral nature of your mother, father, or anyone else.
In other words, if it is unloving and unjust for a certain person or parent to make a certain judgment or do a certain deed, then that can be projected onto God as well. So if he carries out those same judgments and actions, then that also makes him unloving and unjust.
Just because God did it does not make it right. Therefore, I would ask you to imagine for a moment that your mother or father performs the same acts, deeds, and judgments as God. Wouldn't that make him/her an unloving and unjust parent then? I think it would.
Lastly, your brain has different capacities. You have, for example, the capacity to send signals to your body and make yourself move. Therefore, removing the option to sin would be no different. It would be like taking away the brain's capacity to send signals to your body and make you move (aka paralysis). Another example would be that some people in the world are so loving and caring that they are incapable of hating others. So we can clearly see how certain attributes of our personality can be incapacitated. Therefore, if the same can be done for these types of situations, then the same thing can be done in the situation of sin as well.