Both are right.
It looks to me that God has confidence in His design (earth and humans …). He knows humans can easily solve their problems, IF THEY WANT TO. For example,
1) Humans can take the good points of all political systems and design a new one (the same can be done with religion, language …)
2) Humans can copy the habits of some exceptional humans who live a healthy life-style diseases-free till their death.
3) Humans can replace the present judicial system of punishment to the criminals with a system that makes the criminal do double compensation to the victim which will eradicate the crime itself (if the criminal is bankrupt, compensation should be taken from his relatives, community he lives in, religion he belongs to—all of whom are responsible for the building of individuals)
Since humans have the ability to solve all their problems and have ability to become even like God, God will not intervene in the affairs of mankind. This means:
1) God designed the earth for human habitation and left to humans to determine their destiny (which means theists are right)
2) God will not intervene when humans misuse their free-will (which will be interpreted as He does not exit—which means atheist are also right).