Rocking Mr. E gives a very brief synopsis and explanation of the Old Testament in order to explain the context. Naytheists like to claim God is a tyrant, which is interesting because they have a lot of hatred for someone they claim to not believe in.
For will to be free we must be free to choose to harm others. If not, we would just be God's puppets. The only way for God to remove evil from the world would be to either remove free will or to undo creation. The only other solution would be us to accept God and goodness as outlined in the plan for salvation through the person of Jesus Christ.