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In my opinion, God created not just the world, but the entire universe, as a visible witness to His power, majesty, and glory (as exemplified by passages such as Job 38-41). He also created the world specifically to be a suitable habitation for humans, whom He made "in His image" (Genesis 1:26-27), and with whom He intended to have a unique fellowship.
I believe the answer is found in the truth that God is love. Love has a need of something to love and receive love from. Love doesn't exist if it is not voluntarily given which is the whole reason behind free will. Now, when you get into the intricacies of the way history unfolded, the fall of man, the pain and suffering, the sacrifice and resurrection of Jesus, my personal theory is that these things were all needed in order to create the conditions needed for humanity to become fit for the purpose of receiving God's love and loving God in a way that was good. I imagine it like the forging of steel with fire and hammer. Jesus came and suffered horribly in order to create the conduit or bridge between God and man so that true love could actually flow between us. I believe this is why the church is so often referred to as the bride.
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