Thank you for a thought provoking question:
Is there a Better way to Rule for such an Intelligent God??
This all depends on where we are...
If according to many texts globally, here is virtually the top floor of Hell, Bhagavad Gita 16 says demons are sent back here, Isaiah 14:9 says the demons rule this earth, Yeshua said that the Pharisees were making children of the top floor of Hell (Gehenna)... Here is the Maya in Dharmic religions, a place of delusion.
There is a battle going on between light and dark, and we're in the middle of it.
I'm going to try to Overthrow such a Ruler. How about all of you??
So the idea of us overthrowing the CPU, as we're judging it by our definitions, proves why we're unsafe.
No one would ever overthrow a Ruler who rules with Unconditional Love.
Having had a NDE, the first part of Heaven is unconditional love, and the 2nd is wisdom...
Which is why your question made me have to think, since the reality, and what we're told is all topsy-turvy.
Think the big part being missed, is our realm has the formula, 'for every action, there is an equal and opposite reaction'; so people generally are so contrary down here, they go opposite to what we've been told.
Would not the Greatest Intelligence create a system based on Love rather than use mankind's way of might makes right??
This shows a lack of assessment, the world is full of scummy people who take what they're not meant to, manipulate things to not follow the Law, and an intelligent being should spoil them, as that will make them better souls?
What you're suggesting, only works in a world full of morally inclined people; which is what is prophesied in most eschatology, a removal of those who are not worthy to live in that reality.