Can God create all men with the capability of free will and obedience to him?... Yet if God can do such then why does he not do so?
According to the fundamentalists, this is exactly what he is going to do. When all is over and done with, after Jesus comes back, destroys the world, and recreates it for those who have been saved, then there is going to be no sin. Seeing that everyone will have free will (since, as the fundamentalists always remind us, God doesn't want to be surrounded by robots) but won't sin, then this is entirely possible, and God is actually going to do this.
Why he didn't do this at the beginning is a bit of a problem, but one thing fundamentalists are famous for is problematic theology.
I've done everything the Bible says, even the stuff that contradicts the other stuff! -- Ned Flanders