That's a pretty sad argument, that you can look back on everything horrible and dig out a diamond from the mountain of sh!t. If there was a powerful, loving, kind being in charge, he could certainly give us the diamonds without the sh!t. And most of the mountains don't have any diamonds.
Human beings manage to persevere and survive on this planet in spite of the universe being tremendously hostile to all life forms. But survival does not have to be pretty. Much of the time it is not. We are a resilient and adaptable species, like cockroaches.
There is no upside to child soldiers, genocide, human trafficking, drug addiction, natural disasters, extinction of species, nuclear plant accidents. That does not mean we just give up-- life is a wonderful thing and beautiful marvels happen every day. In spite of the sh!t mountains, not because of them.