I find it hard to see how people ignore this issue. It's an obvious problem with the god hypothesis.
For more sophisticated arguments around this question - you might want to check Wikipedia under the entry "the problem of evil". I stumbled on this recently, just re-checked, and it has references to a fair bit of serious thinking around the issue.
Not my area of interest really... but I'm sure it'll be of use. As I said... it looks fairly comprehensive.
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