Hi deegee, sorry I didn't see your response.
I think you are going a bit off track here, your going into the problem of natural evil, the Epicurean trilemma.
The first question shouldn't be why evil exists, but rather is God real? Then we deal with the problem of evil.
The other question about why he chooses to act in certain situations and not others is also another dilemma, but I don't feel has merit in this discussion.
The question is, was my and your experiences real? Did we misinterpret something that we saw? Are we or were we crazy? Were these experiences only in our mind, or were there external players?
I take it you don't believe in God, you believe these experiences were in our minds only, and that believing in this stuff is rubbish and even harmful at times, and that we should stick to a strictly material view of the world. I don't want to box you into a belief system, I'm trying to understand what you believe and where you are coming from so we can further develop this conversation.