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“Therefore as sin came into the world through one man and death through sin, and so death spread to all men because all men sinned” (Romans 5:12). The point we must keep in mind is that man is responsible for sin – not God.

This is from Paul E. Little's writings. Here's more from "Know Why You Believe"

But many ask, Why didn’t God make man so he couldn’t sin? To be sure, he could have, but let’s remember that if he had done so we would no longer be human beings, we would be machines. How would you like to be married to a chatty doll? Every morning and every night you could pull the string and get the beautiful words, “I love you.” There would never be any hot words, never any conflict, never anything said or done that would make you sad! But who would want that? There would never be any love, either. Love is voluntary. God could have made us like robots, but we would have ceased to be men.

If God were to stamp out evil today, he would do a complete job. His action would have to include our lies and personal impurities, our lack of love, and our failure to do good. Suppose God were to decree that at midnight tonight all evil would be removed from the universe – who of us would still be here after midnight?

And God has done something about the problem of evil. He has done the most dramatic, costly, and effective thing possible by giving his Son to die for evil men. It is possible for man to escape God’s inevitable judgment on sin and evil. It is also possible to have its power broken by entering into a personal relationship with the Lord Jesus Christ. The ultimate answer to the problem of evil, at the personal level, is found in the sacrificial death of Jesus Christ.

To speculate about the origin of evil is endless. No one has the full answer. It belongs in the category of “the secret things [that] belong to the Lord our God” (Deuteronomy 29:29).

http://books.google.com/books?id=5zcgyEUIFOEC&pg=PA132&lpg=PA132&dq=Why+are+there+wars+in+which+thousands+of+innocent+people+are+killed,+children+are+burned+beyond+recognition+and+many+are+maimed+for+life?&source=bl&ots=FF_lJZ4oWQ&sig=jqS3X_oBxj5BMyNyJ1VEqHjPjus&hl=en&ei=aEeVTbH7N4PB0QH1xpz7Cw&sa=X&oi=book_result&ct=result&resnum=3&ved=0CCAQ6AEwAg#v=onepage&q=Why%20are%20there%20wars%20in%20which%20thousands%20of%20innocent%20people%20are%20killed%2C%20children%20are%20burned%20beyond%20recognition%20and%20many%20are%20maimed%20for%20life%3F&f=false

The point we must keep in mind is that man is responsible for sin – not God

But it is God who ordained sin, unless things happen contrary to his will. And if it was part of his will, then it is his doing, because the world is either exactly as he wills it or he is no sovereign lord over this world.

The appeal to the "machines" argument may be an attractive way to let God "off the hook", but then if God wants "all men saved" and no one will sin in heaven then we must assume that he really wanted us that way, namely mindless machines who only do his will.

For why would God create man innocent and pure only to let him fall so he can then save him as such a price so that he can be innocent and pure once again?!?

If God were to stamp out evil today, he would do a complete job. His action would have to include our lies and personal impurities, our lack of love, and our failure to do good. Suppose God were to decree that at midnight tonight all evil would be removed from the universe – who of us would still be here after midnight?

Well, the short answer is: all the people for whom Christ died and who believe.