So what is the difference? He knew they were Hell bound and created them anyway. Sounds just as monstrous as the picture you are painting.
That is a really good question.
The difference is choice. We have a choice to accept God's freely given Grace, do what he asks us to do, and accept the possibility of salvation. It is OUR choice, not God's. If I wind up in hell, I will know it is because of what I did. Not because an evil god created me to watch me suffer.