First, I am curious about the Jewish non-belief in the devil/satan? What does the Jewish faith use to 'categorize' evil/sin/disobedience to God? If a person does not follow God (and His laws), then 'who/what' is this person following, in the Jewish faith? Does the Jewish faith simply attribute sin, etc., to 'ungodliness' (ie. for or against God, only)?
More or less. If a person does not act morally or ethically, then they are doing what displeases God. But we believe in human free will: people have the power to do as God finds displeasing, and they need no supernatural help or temptation to do so. Jews believe that innate in all human beings is a
yetzer ha-tov (will or urge to do good deeds) and a
yetzer ha-ra (a will or urge to do evil, or at least chaotic, deeds). These both are reflective of God's nature (see Isaiah 45:7).
The general idea is to master the
yetzer ha-ra (evil or chaotic urge) so that its force is sublimated or channelled into productive outlets: greed and anger are sublimated into becoming healthy competition and ambition, a drive for success; lust becomes sublimated into marriage and procreation; gluttony, idleness, laziness, bibulousness, all become sublimated into appreciation of the produce God's earth brings forth and an appreciation of rest and celebration on God's holy days; and so forth.
So, someone who simply has not mastered their
yetzer ha-ra, or has allowed it to rule them, is guilty of doing what displeases God, but more internally, is guilty of both self-neglect and unrestrained egotism, in that it is both to society's detriment and to their own personal detriment that they do not exercise self-control and self-care.
In any case, Judaism is, generally speaking, much less interested in the motivations behind sin or good deeds than in the concrete actions themselves. What we understand to be most displeasing to God is being unjust to other human beings; thus, motivation is of secondary importance: acting justly and ethically is of primary importance. True, it's better to act justly for the right reasons than justly for the wrong reasons, but either is better than acting unjustly for any reason.
Secondly, I still have the problem, of understanding why the holocaust even took place. God has always taken care of His chosen people. The only time that they were 'forsaken', was when God deemed it necessary to 'chastise' them. This is what I am trying to 'get at'. The holocaust was such a heinous/horrific event, of such a magnitude, that was never seen on the face of this earth before, where the chosen children of God were concerned. We read of horrific acts against gentiles, because of their ungodliness, but why the Jews, if they were in fact 'godly'? We have read of the Israelites being in bondage/captivity, but not massacred, as they were in the holocaust. I am just curious.
Perhaps God does take care of the Jews: perhaps that's why there are any of us left at all. It could easily have been otherwise.
In any case, we hold that God does not relish anyone's death. There is a famous midrash (exegetical parable) that relates that, when the Egyptians were drowning in the Red Sea, after it closed over them (the Israelites having safely crossed already), the angels in Heaven wished to sing and rejoice; but God stopped them, and demanded, "How can you sing when my creations are drowning?!"
I wasn't kidding when I spoke about human free will earlier. I think that God values free will deeply, and as the human race evolves and humanity becomes smarter, and, hopefully, wiser also, He interferes less and less overtly in human affairs. In that sense, God has certainly not always taken care of us: we were often killed by the Romans, and have fallen victim to pogroms and bloodbaths of various kinds in nearly every land we have inhabited. During pretty much every crusade, the Christians spent their time en route to fighting the Muslims by massacreing Jews in every community they passed through. The Spanish Inquisition had us massacred by the cartload. The Tsars had us massacred, the Poles famously massacred us.... Granted, the holocaust was far vaster in scale, but in essence it was nothing new.
Chosenness doesn't mean that God's our personal bodyguard. I'm not sure it ever meant that. Chosenness is also not necessarily exclusive. I think there's a common misconception that because we are sometimes called the Chosen People, that means that we think God picked us, and He likes us better than other people. That's not actually what Chosenness means. We were chosen to be tasked with certain responsibilities. We were chosen to be Jews, and keep the Torah. Many of us presume that this either does not preclude or actually indicates that God may have chosen other peoples for other responsibilities, and given them other teachings to keep. Our relationship with God is special. But presumably other peoples could have different special relationships with God.
In any case, the holocaust almost certainly had nothing to do with Chosenness or with God's choosing or not choosing to protect us. I don't think God's stepping in for anyone, in that sense. Human free will means that even if we choose to do things so displeasing to God that they are unprecedented in their evil, God will not interfere. It is a harsh lesson for us about what kind of creature humanity can become, if evil is unchecked.