[1-]I guess that's where you and me differ, I find NOT existing to be one the worst punishments...couldn't even imagine...
[2-]All acts are good and evil...I find that a little extreme...We can choose between two good or neutral things..or two evil things...Not every decision you make is either strictly Good or Evil.
[3-]But you are not omniscient-potent...If you knew your daughter was going to become a prostitue...and you had the power to stop this...I would hope you would.
Numbers added
1-My point exactly!

Consider an eternity (NEVER ENDING) of the worst possible kind of torture in the world. Imagine the worst kind of pain that you ever felt, perpetuated for all eternity, and you never get used to it. Compare that with a relative nothingness or non-existence. Which would be a worse punishment fit for the begginer of all Evil? Do the people who are bound to that fate deserve it? Yes, otherwise God would not send them there. A boy who grows up in an abusive family, were his Dad is a hitman who takes him with him on jobs, making him help, will not be culpable if he kills someone, for he did not really know that it was wrong.
2-Give me three examples of acts which you think are morally neutral, and I will tell you if and why they are inherantly good or bad.
3-I may, if granted that power. But then, as you stated, I am not omnipotent nor omiscient. Perhaps becoming a prostitute (am I spelling that right?) would allow her to, later in life, create an organization to save thousands of women across the world, and by not giving her that expeirence, by saving my daughter from temporary suffering, I would have ruined the lives of thousands.
I do not fault you for thinking in this manner. It is the thought of the world. If I may toot our own horn, I would say that the Catholic Church's position on suffering- that we can offer it to Christ for the good of the world- makes the most sense. People usually try to avoid suffering, even though it may be the best thing for them in the long run.
Two examples from my own expeirence
1- My mother-in-law lost her job out of the blue for no reason. They live about 70 miles from the nearst towns with work, of which there are two. Two weeks later, she found a better job, with more money, in a bigger center, and she could still carpool with a neighbour. Two weeks of worry, doubt, and fear, but it was for the best.
2-My wife was a superviser at a hog barn (before we were Catholics). Because of the physical labour, horrible hours, the stupid people, and mistreatment by managment, she was basically forced to quit or be put in a mental hospital. They wouldn't let her have two days off before our wedding!! Because she quit we were no longer able to afford birth control- being but poor farmers- so she went off the pill (positive #1). Then she became pregnant with our baby girl who is two months old today (positive #2, but really #1) we still are in a lack of fundage, but I sacrifice myself daily to my work that I might provide for my family, were as before I was basically motivationaly hallanged (positive #3). We will also be taking a course on the Sympto-Thermal method of NFP in a few days (positive #4)
This has been more of a post about providence than free will, but I hope it explained were I was coming from.
I am glad you are truly seeking the truth. And if you don't
choose 
to turn away, I know were you will end up.
I will pray that you are succsessful in your search for Truth
cm24