Any moral person with any feelings of empathy is moved to take action when they see people suffering. Failure to take action when one has the power to can be regarded as moral depravity. With this in mind, why should a being with infinite powers to see, know and do everything and anything be exempt from acting in a way that meets minimum moral standards?
When people see pain, those who have not become desensitized and are moral want to take action. Their hearts will ache for those they watch suffer. This is especially true for victims who are particularly innocent or helpless such as children. Most people regard those who are not moved and would not take action as sick as those who commit the crimes themselves. However, people do not judge their god by the same standards even though it is supposed to see everything in the most incredible detail and have power beyond belief.
See and hear no evil
Everyone knows the most horrible things happen to people. Be it a terrible accident, a child dying of starvation or another dying in a heinous crime, this god would have to see it all. On top of seeing every drop of sweat and blood as well as hearing every agonized scream, it would have to know all the feelings of horror and sorrow of both the victim and the loved ones of the victim too.
Who is morally superior?
While there are many reasons why suffering continues in the world with a good part of it being caused b the flawed nature of humanity, more people would surely be motivated to take action far more often if they saw the suffering up close and had the power to stop it. Since this god chooses to sit and do nothing but watch even though it knows all, sees all and has the power to do anything, are not the people are moved to action morally superior to their god?
Why do nothing?
What could possibly be the reason for doing nothing? Some will say that this god does nothing because he cannot interfere with free will. Life is a test. However, if this god is all knowing, does it not know what people are going to do regardless? Besides, what about the free will of the victims? By sitting and watching children die horrible deaths, this god is allowing them to be robbed of their only chance to ever exercise free will. Especially in the case of repeat offenders like serial killers who have already proven their evil, why let them go and take another innocent victim and thus destroy that persons chance to exercise their free will?
This is all further complicated by the fact that this god is supposed to have created everything. Should not the creator of everything be at least partially responsible when bad things happen? When a child goes bad, people often put some of the blame on the shoulders of the parents, but no parent can have the kind of power to mold things like any creator of the universe would. On top of that, if this god is all-knowing, then it knows what people like Stalin or Hitler will do before he puts them on the earth.
For a merciful creator of everything, being able to sit and watch the most horrible things, but not feel any responsibility and not do anything totally stretches the imagination and goes well beyond logic. If this god is really as all-knowing and all-powerful as claimed, it certainly cannot have any kinds of feelings of human empathy, morality, sympathy or fairness.