Theodicy is the apologetic that attempts to answer the counter-apologetic known as "the problem of evil". As you pointed out, it seems to cover the issue of bad folks profiting from good folks by condemning them to hell, but even that fails badly in my opinion. Why should God allow bad things to happen to good people to begin with? Most theologians invoke free will here, but that's really a shitty answer too. My reservations of the true existence of free will aside (neurological determinism and all that), a god that values the free will of a bad man over the well-being of a good man, certainly can't be all loving and all powerful. Look at it this way, if I have two dogs, and one is abusing the other (in a significantly detrimental, not talking about working out pack status here), I can't be called a loving owner if I let it go on saying, "don't worry, later I'll burn that bad dog for all of eternity". That's a totally ludicrous response. This of Kevin Carter's Pulitzer prize winning photo.
http://all-that-is-interesting.com/word ... ulture.jpg There is no context under which a loving God could possibly allow this.
Further, theodicy is no answer at all to why God would allow natural "evils" to befall innocents. To quote Steven Fry, "Bone cancer in children, what's that all about"? The reality is, if an omnipotent, omniscient, omnibenevolent existed, childhood disease would not. That's the point Epicurus (and Brian) were making:
Is God willing to prevent evil, but not able? Then he is not omnipotent.
Is he able, but not willing? Then he is malevolent.
Is he both able and willing? Then whence cometh evil?
Is he neither able nor willing? Then why call him God?”