It used to not bother me either because I thought people had a choice in life but now, I know my fate and other peoples fate is already determined.
God is exceedingly patient though, and all He really wants is for the world to live in a holy way so that everyone supports each other and nobody is caused to suffer. Isaiah 11:6-9 describes what He wants:
In that day the wolf and the lamb will live together;
the leopard will lie down with the baby goat.
The calf and the yearling will be safe with the lion,
and a little child will lead them all.
The cow will graze near the bear.
The cub and the calf will lie down together.
The lion will eat hay like a cow.
The baby will play safely near the hole of a cobra.
Yes, a little child will put its hand in a nest of deadly snakes without harm.
Nothing will hurt or destroy in all my holy mountain,
for as the waters fill the sea,
so the earth will be filled with people who know the Lord.
.. and yet, in order to live this way, we need to accept that we cannot just live totally the way we want to. Sometimes we will need to sacrifice something that we desire and that we can have, in order to live instead the way that God wants us to live. Fornication is an example of that sort of sacrifice. Yet, because the human knows it is able to live an unholy way, and often they are even encouraged by society to do so, it is impossible for God to allow the human to go on living forever and never coming around to be the type of person that they must be, in order that they can live forever without destroying the paradise conditions. In Genesis 6:3, God declares that the human's lifespan shall be no more than 120 years, because that is long enough. That very verse even says that His spirit grows weary from contending with the human who will not right his ways.
Plus, He did intend for Israel to be the holy nation that all other nations would look to as an example of how to live and prosper, and how to please Him so He would bless the whole world. But they too were not able to overcome the desires of the self that are ultimately too strong for many of us, and when He did bring forth Jesus to lead as Messiah, instead of recognising Him and the truthful way in which He leads, they rejected Him and tried to lead the kingdom of God in a way that made them feel best.
Do you know what though? Instead of saying to God "Father, make sure these people burn in hell for this", He said "Father, forgive them, because they don't know what they are doing".
What's more, God knew that you and I would be tempted to confusion about all this, and would risk falling away due to the idea that God did it to punish Jesus, but He knew there is a sliver of hope that we would find out the truth about it, the real reason why Jesus was submitted to this brutal, unfair and evil treatment. That reason is that God wanted to show that He loves us so much, that He will even allow the religious leaders in that day to betray and reject Him and His dearly beloved, perfect son, so that you and I today can look at that act of sacrifice and we will know that truly, He does want to forgive us.
As St. Paul reflected on this truth, he observed "seeing as sin entered the world through one man, and sin brought death, spreading to all mankind.. how much more the life will abound that comes through the sacrifice of the one man Jesus Christ!". - And what this really means is that even though we lose our life due to sin, the life that we are given through faith in Jesus Christ is stronger than death - because we know that God loves us that much, and we feel comfortable then that truly no matter what sin we have that we feel is too great for His forgiveness, actually if we turn to Him and confess that we hate our sin, then He will forgive and accept us and teach us to overcome sin.
In the time before Jesus, worshippers were concerned with satisfying the conditions of a defined set of law, and yet this was always the negative, condemning view - that whatever we do wrong is failure and sin. Animal sacrifices would give the assurance of God's forgiveness, so we could continue to do our best to live without sin. But animals were plentiful and accessible, and sacrifice for sin became a way of life, so there was no real conviction of the gravity of our sin. Whereas now that we know Jesus has died, the blood most pure and sacred, for our sake! .. well, now we know can see the gravity of sin, that causes mankind to hate and kill God, and we know how seriously we must treat repentance so that we have not wasted His love and mercy. This is why Romans 5:15 draws the point that life given in Jesus Christ abounds much more than the transgression of Adam.
Living according to the law could not give life, it could only condemn. Whereas having faith in Jesus, knowing that God accepts us if we are attentive to learning from Him in spirit, and actively repenting as we become aware of our faults, then we are living with a conscience that is clear. We are not being condemned by God, but The Holy Spirit is telling us that He is pleased with the fact that we are obeying His teaching. Our conscience confirms this too, so in this way, we are freed from the condemnation of sin, and we are made alive in the spirit!
And they will be banished to hell, right?
I think you really should look for scriptural evidence of this idea, because I am not convinced that He wants to submit all the unsaved to everlasting torment. The final result of those who aren't saved is described as a "second death".