Looking back at my answer I guess I turned the question more into "where does injustice come from" and not "why does an all loving God allow such evil" but really I think a proper answer needs to grapple with its origins. If good and evil are manmade constructs that are far-flung from Biblical definitions of good and evil, then maybe its a pesky social fact that developed with society. I guess that does kind of come close to Augustine's position, but that doesn't mean that people should just submit to authority. Great acts of violence were perpetrated against colonizing forces and such in the past, and the European revolutions were punctuated by violent upheaval. Submission in these cases would have spelled the premature death of freedom (well, bourgeois freedom anyway).
Alternatively, the Westboro Baptist Church thinks God hates all the right people and that he made certain people for us to hate him. But they are also dumb and that's the official position of McDonalds (TM).
-RealMcDonalds