I've dwelled on this for a while before. God isn't bound by time. He sees your future past and present, but doesn't alter your free will, or others free will, the fact that he isn't bound by time is how he's able to go through and know everyone's life. It's pretty cool if you think about, it's like he's just watching your life story and yet after your story is done he can go through and watch another's.
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This explanation still doesn't challenge the fact the god KNOWS. However he knows, he knows many will burn in hell but creates us anyways. I get the unaltered free will thing but my point is simply: God knows the sad fate of many and creates us anyways I would not selfishly create a race to have followers knowing that billions with suffer for eternity