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But the rest of us have (sinned).
Pointing out that we have free will and make evil choices is beside the point. I already know that. I’m saying that this isn’t a necessary state of affairs. So when you try to explain “Why does the Lord allow evil?” by “because he has to in order for us to have free will” your explanation seems obviously false.
There are lots of ways I could make this argument. For example, as I mentioned in another thread, most Christians think we will not be capable of sin in heaven, but we will still have free will. Or I could point out that God stopped Abimelech from sinning (read Genesis 20:1-7). When God stopped Abimelech from sinning he either did this by violating Abimelech’s free will or he did this in a way that did not violate Abimelech’s free will. If the former, then is it really such a bad thing that Abimelech got his free will violated so that he couldn’t sin? He seems thankful for it to me. So why not do that for the rest of us. He can give us free will, but then short-circuit it whenever we are about to sin. If the latter, then God could always prevent us from sinning without violating our free will.
Are you saying the Lord is incapable of making us happy?