Why Does God Send His People To Hell?

I used to be on the lesser scale of being religious but over the months I'm losing that less and less, I still believe in life after death and souls because there is documented proof of it, hey I even believe in a creator but I don't understand why we are mass created to be sent to hell unless we worship God in some way, if he's so good he shouldn't care and would be content just creating life, why is hell even an option? Can't he just obliterate us if we're sinners. I think its unfair to send you to a dismal void of endless depression just because you didn't feel his presence, eternal punishment is harsh anyway, why not only let a person be a human so many times and the rest of your lives as an animal. Most people hate God because he allows bad things to happen such as cancer or various crimes but at the very least the Earth is an ugly place, heaven is the good one, but why can't it just be heaven, why hell? Why did God create the demons and evil? Is it fun to watch bad things happen? What kind of punishment is Hell?

TL;DR if God is so good then why did he create Hell? Hell is a place for him to get vengeance on his sinners, but vengeance is bad, they teach you that in karate class, why does God do it? Hell should only exist as a trashcan for the regretted creations, a trashcan if you will.