Why Would A caring God Create Hell?

Let's ume the general concept of God for the major religions, which in the scriptures depict a 'merciful', 'caring' and 'loving' God- not my interpretation- the 'irrifutable' words of the scriptures. 'Do not be afraid' (source: My Old preist of my days of being a beleiver), I have heard, appears in the Bible 365 times. But this idea of a God is inconsistent- I am an 'immoral' atheist, I have been told- as I have no moral comp- yet even I can tell that enternal and everlasting punishment and torture is immoral- even without the prefix of 'eternal'. Coming from a 'forgiving' and 'loving' being, this model is entirely inconsistent. God has made me a rational person, God has imbedded in me the questioning charachteristics that in turn make me a non-beleiver, and due to how I have been made, due to the fact he has made me knowing (as he knows everything) I would never seek him due to my rationality, and I am subject to entarnal, most horrific torture? What kind of God would do such a thing? And finally, if God knows everything, which he supposedly does, he knows, before he has even created them, who will go to heaven, who will go to hell- why would he create people just to condemn to hell? Surely therefore it cannot be argued God is testing us- the value of a test is learn the capabilities and abilities, morals e.t.c. of another- But God knows everything, God doesn't need to test us to learn that information does he? Apparently so- therfore, the model of God is entirley contradictory (Please don't try the argument that God is a paradox and out of reason, since the Scriptures are within our comprehension), or God enjoys creating pain in his little test tube ants- either way, God is not who we think he is and depending on one's definition of what and who God is- does not exost in the sence we beleive him to. I am according to my friends, in need of salvation- please save me (might I add- I am being saved from god?????? Do I really want to know this person???)