Unsurprising: it's called "life."
A label is not an explanation. Other conceivable arrangements would be called "life" as well.
Fortunately, I posited no such thing.
Then what are you arguing?
Ignoring for the nonce that it's only a hypothetical, I see no obvious reason why we wouldn't (though if this is a setup for a trick follow-up, then cancel this answer; and I decline to say).
It's not a trick.
I just wanted confirmation from you: so you do agree if we were physically prevented from committing evil acts to a slightly higher degree than today, we would still have free will?
Why didn't God create the universe that way, then? If it would have slightly fewer evil acts and slightly less suffering, but equal in all other respects, then it would be slightly better than the universe we have. This implies that the universe is an imperfect creation at least to a small degree.
Do perfect beings create imperfect creations?
Not so, because that in no way influences my points.
Even if it doesn't influence your mindset, it does influence the validity of what you're arguing.
If you read the above carefully, you'll discover that you in fact screwed it up by using the wrong term at one point.
Which term?
As created, yes! To quote the Baha'i scriptures:
Okay - so we start out entirely good. This implies that we will only deviate from being entirely good if we're influenced by something outside us that is less than entirely good.
So what was it? What got the ball rolling?
What I'm getting at is something like the First Cause argument, but from a different perspective: if all effects can be traced back to God the "first cause", then God is the one who set in motion everything that's happened since Creation. This includes not only the good things, but also the bad.
If you're saying that the bad came from someone other than God, then you're implying that there's a source for at least part of Creation that can't be traced back to God.