This is what you're missing the point of:
Of course there is pain. Of course there is evil. There will always be torture, rape, and murder. And there will always be good. There will always be charity, and love, and overwhelming compassion. That is the work of God.
I believe that God exists. Honestly, there is nothing wrong with that. It is easy to think that God makes people think one way or another, but God represents something different, something comforting for people. If you don't believe in God, when you die, you are gone. End of story. You never have a chance to see the people who died before you. You don't get second chances at all. That's really depressing.
You could claim that God makes people biggots, but he does not. People's interpretations of God make them biggots. The church, occasionally, can make them biggots. But you fail to realize all the religioius charity in the world. All the unification that comes from knowing "we're all Christians, we're all God's children, we're all in this together." Sure, there are wars fought over religion, but that is not God's work. That is the work of people. People are human. God is not.
You can easily choose different passages in the bible that advocate biggotry, or violence, or whatever. But that isn't God. God loves everyone and everything, equally. Period. I challenge you to find a bible verse that contradicts that.
God is not "impotent or evil." He lets things take their course. He lets mistakes be made. He lets humans be human.
Honestly, atheism is somewhat hypocritical in a sense. Okay, I just contradicted myself. Atheism is not hypocritical. Atheists are often hypocritical. Just like Christians tend to push their views on other people. As much as atheists whine about Christians pushing their views on people, they do the exact same thing. While Christians threaten Hell, atheists threaten a life of ignorance.
Either way you think about it, it doesn't really matter who's right or wrong. We just have to accept each other for our disagreements.
So, I sound preachy, but, so do you. So.. yeah.
"If there was hope, it must lie in the proles, because only there, in those swarming disregarded masses, eighty-five percent of the population of Oceania, could the force to destroy the Party ever be generated," p.60, "1984," by George Orwell