It is impossible for God to arbitrarily create some people to damn and others to save.
God desires that all people be saved and that no one be lost.
...
Let's deal with this, shall we?
No-one has said anything about God doing even one thing "arbitrarily". God ALWAYS has purposes for everything he does.
God works all things according to the counsel of his own will. He is almighty, omniscient and all-wise; so, if he had purposed every person to be saved, then every person would be saved. Who could thwart him? You and I certainly could not, neither could the devil and his demons; in fact, the Bible states that everyone whom the Father has given to Jesus WILL come to him, WILL NOT be cast out and WILL be raised up at the last day.
Jesus deliberately spoke to many people in parables, which, as the Bible states, was to make sure that they WOULD NOT understand. On the other hand, he explained the parables to his disciples.
Jesus himself stated that he would lay down his life for the sheep (i.e. not for everyone). Later in the same chapter (John 10), he told some Pharisees that they did not believe
because they
were not of his sheep (N.B. not the other way round!).
Jesus also laid down his life for the church (again, not for everyone) according to Scripture, with the church being his wife, symbolically. If Jesus had laid down his life for everyone, and not only the church, they he would have been a spiritual adulterer!
Then there is the problem of justice; if some for whom Jesus died ended up being punished for their sins, that would be grossly unjust, since Jesus has already taken the sins and punishment of his people upon himself, on the cross. In other words, God would be punishing people for sins for which Jesus had already propitiated the Father.
The fact is that Jesus laid down his life for those whom God chose, from before the foundation of the world, and for no-one else. To those people, God, in his chosen time, gives the gospel, repentance and faith in Jesus Christ, unto salvation. They are justified, sanctified,and will be glorified, when Jesus returns.
Rom. 8:28-30 (E.S.V.)
28 And we know that for those who love God all things work together for good, for those who are called according to his purpose.
29 For those whom he foreknew he also predestined to be conformed to the image of his Son, in order that he might be the firstborn among many brothers.
30 And those whom he predestined he also called, and those whom he called he also justified, and those whom he justified he also glorified.
This is the unbreakable, golden chain of salvation, starting with God's foreknowledge (as an author knows, in advance, those characters in his book whom he is going to treat favourably) and ending with our glorification, at the resurrection of the just.
SALVATION IS OF THE LORD!