I feel the same way Avi, and I take it to a place that is apparently very non-meshing* with the christian background I was brought up in.
The difference in Christian doctrine is subtle, but all-important.
All things subsist by the will of God, but God is not part of their existence, not part of their nature ... else the question is, where is God in a sock or a sofa?
... I can't see how he can be a being of only good that has nothing to do with any of the bad things, bad people, or the bad actions of those people, even the evil actions.
Then you don't understand the nature of evil. Evil, by definition, means against the will of God, so if God wills both what He wills, and what He does not will, you end up with utter contradiction and a God that doesn't know His own mind...
Another way to look at it is:
All things exist by the will of God, but those things endowed with a free and rational nature (humans and angels) have the freedom to
act according to their
own will — if they choose to act towards God, which is towards truth, reality, being, etc., then that is 'good' ... if they however wilfully and knowingly act towards their own satisfaction, knowing it to be contrary to the good of all, then that is evil.
God then is not the author of the act, the acting agent is. So the evil is in the acting agent, not in God.
In seeing God in everything, I found myself coming to the conclusion --apparently an erroneous conclusion to most-- that God created bad things, and evil things, right along with the good things. And that everything, in the end, is good, and has a purpose.
Well that's one of the fallacies of panentheism. You end up thinking everything is willed by God, therefore everything is good even though I can't see it — even child abuse, genocide, etc., (and there are those who would argue precisely that) ... and eventually that everything 'I' do is good, because it's what God wants me to do ... and everything that happens is down to God, not me, I am blameless, and therefore cannot be judged, therefore all your talk of hell etc., is nonsense ...
Unless, of course, as a panentheist God is both good and evil, then it's logical that such a God wills that maybe one or two in every generation makes it into paradise (maybe none, maybe one or two a century), and the rest go to perdition.
Thomas