In short, Yes. If God created beings with free will and protects that ability, then what God created is good. Yet, the creation can autonomously choose how to use the ability—for good or evil. The question remains then, “why does God stand by and do nothing.” Answer: He does not stand by and do nothing but,
A. Promises to redeem all evils
B. Sacrifices himself and returns to life in order to insure all evils will be redeemed
C. Enacts his plan on a universal scale outside of the realm of time & space… and because of our finite limitations, we cannot see the precision with which he enacts his plan. Also, he is so powerful as to be able to both allow the exercise of billions of individuals’ free will AND still forward His plan of redemption of all evils.