There is a fundamental flaw in permise 4 5 and your conclusion.
Allah has the ability to create a world without evil however he chose not to this is explicitly stated in the quran.
"And [mention, O Muhammad], when your Lord said to the angels, “Indeed, I will make upon the earth a successive authority.” They said, “Will You place upon it one who causes corruption therein and sheds blood, while we declare Your praise and sanctify You?” He [Allah] said, “Indeed, I know that which you do not know." [Quran 2:30]
When Allah, the Most Exalted, wanted to create Adam
He informed His angels of that. They asked Him the reason behind that, because they knew that the sons of Adam
would cause corruption and shed blood, and they would disobey Allah and disbelieve in Him. He told them that there were reasons for the creation of Adam
which they did not know.
Human beings have free will. We have the ultimate choice to either obey or disobey Allah. Allah SWT DISLIKES the evil in the legislative sharia sense but he WILLS for a world that contains evil.
Verily, We created man from a drop of mingled sperm so that We may test him; and therefore We made him hearing and seeing. We have indeed showed him the way, now he be grateful or ungrateful. (76:3)
Test will be held for all persons, believers and non‑believers alike. Test presupposes that the man is not predestined to go to Paradise or Hell, as some groups of the Christians and the majority of the Muslims suppose. If our place in the hereafter is predetermined, then why should we be given orders to do this and not to do that?
The test which we are to undergo is not meant to add to the knowledge of God. Although God knows everything, it still is necessary that all men and women be put to test so that the true form of God's justice and mercy may emerge on the Day of Judgement.
If God were to send all persons to Paradise or Hell according to His own knowledge without putting them to test for their beliefs and deeds, then those sent to Hell could rightly complain that why were they being punished without any sin on their part while others enjoyed bliss of Paradise without any good deed in their credit? So in order to uphold the principle of justice and fairness, it was necessary for God to test all persons before sending them to Hell or Paradise.
Therefore Gods wrath is far from absurd. It is fair and just as he is Al - Hakam: the one who always delivers justice.