This part of the thread strikes on the paradox of free will, which of course is only a paradox if God experiences time. A key idea in Christian theology is that God, who is acknowledged to be separate from the created order, is outside of time ("a thousand years is as a day and a day is as a thousand years" comes to mind, but there are a number of verses supporting this theology).
So a particular person is really a 4-dimensional static object to God, who is viewing from outside of time. A sculpture that (to us, paradoxically) determines its own shape through free will. If you wrap your mind around this, you will see that God can know every decision we "will" make "after" we make it at the same "instant" he makes us (and actually at the same "instant" he create"d" the universe). We make the decision, but he does not know what it is until after we make it. There is no violation of free will.
But as to why God created a universe in which so many would reject him... is it not equally plausible that the universe is teeming with planets devoted to him and we are the only race that has turned its back? Perhaps. But does it change the fact that we are the ones who are to blame for making our own choices? After all, anyone on this site knows what it takes to be saved, and yet many ignore the message, treat it with derision, mock the God who brings it, and even blame him for their own rejection of his message.