To be precise, nothing happens without will of Bhagwan. But that doesn't stop us from doing what we want.
This might not be an appropriate example but for the lack of a better one I am using it. The power of almighty is like an electric current. As long as you have a proper supply you can do whatever you want with it. You could run a fan, tube-lights, TV, computers, refrigerators, power plants, cars, the list goes on. How we use it is up to us. One can also use it to electrocute someone. If the pwoer supply is cut, all electrical appliances will stop functioning.
Similarly, it is God who empowers us to do stuff. If he pulls his power back, the entire universe will come to a stand still. It'll decay. How one uses his power is completely one's own decision. He does give us wisdom about how to live life, what is right and what is wrong. That's how we are different from puppets. That's how life is different from a drama. It is because of this power we call him all-doer. Without his will, our minds can't even generate a fragment of thought let alone doing something. (mad-bhayad vati vato 'yam. suryas tapati mad-bhayat - Bhagwad Gita)
God wouldn't stop a terrorist from killing an innocent child, neither will he stop a soldier from killing a terrorist. It is up to the individual to decide where to fire. It is our deeds which make us who we are. (More details on KARMA theory, Bhagwad Gita)
Bhagwan Swaminarayan has written in his Shikshapatri that "One should not commit suidcide." Why would he write that if he wouldn't have granted enough liberty to an individual to end his \ her own life?
And finally about assumption 4, it is not lying in the dirt for the taking. It take years (lives) of devotion to attain. Manushya deh is the only form where one can work towards attaining oneness with Brahma.
Food for thought -
If God wanted to play with us like toys, one earth is more than enough for him. (7 billion homo-sapiens + other countless species) Why would he create infinite universes, each with countless earth like planets?
Thousands of years ago, our Rishis could precisely calculate \ measure and document a lot of things (like Earth's diameter, constellations etc.) which science has only found recently or yet to find. If you read scripture like Gita, Vachanamrut, you'll experience that a lot of it precisely going on in our lives, body and mind. So what they have written about God stands more than 50% chance of being the truth. Don't you think?