Yes.
He creates them without the psychological capacity to resist sin
Not quite. It's not that God decides in each individual case to make each person unable to resist sin. It's hereditary. When Adam fell, he took all his male-line decendants with him.
So He'll fudge the rules for some, and not others? I can't help but find that--not arbitrary, for if anything has a reason, God does--but simply cruel. Or is it that He offers Grace to all, but some refuse it, and He allows them to do so?