I've heard time and time again from Christians that the reason there's so much evil in the world is so that we may possess free will. Without evil, there would be no free will. My questions are:
1) Is there evil in heaven?
2) If not, then does that mean there's no free will in heaven either?
3) If there is free will and no evil in heaven, then why didn't God just make things like that on Earth to begin with?
Well, I can only give you a Jewish answer, not a Christian answer, but maybe it will help. Of course, this is all in reference to The World To Come, which in Judaism is more or less analogous to Heaven, but is not quite the same concept.
1. Not from angels, and I suspect, not from the souls of human creatures either. I don't know whether or not to include God, who as the One Source of All is responsible for the existence of evil, and therefore must incorporate some seed of evil within Himself (see Isaiah 45:7). Some in the Jewish tradition would tell you that the evil do not make it to The World To Come (according to varying ideas-- Judaism has no single theology of the afterlife, but has many suggested ideas people have proposed, which can be accepted or not as individuals see fit-- either they simply lose their individual souls and their energy returns to God after death, or they work out their sins in Gehinnom, which is like purgatory) but I would go with the Jewish tradition that says that people who are lacking in some way, or sinful, or have not learned enough are reincarnated repeatedly until they are fit, and then they go to The World To Come-- thus they are no longer evil when they get there.
2. Angels have no free will in Jewish thought. People do, but as I just mentioned, I believe that by the time anyone makes it to the World To Come, they have figured out (of their own free will) why they don't want to continue to choose evil.
Between those two answers, hopefully it will be clear why your question 3 is moot IMO.