Biblically you're only half right. Satan doesn't "punish" people in hell or earth. He's not even [currently] in hell.
The idea of hell being a place where demons stick pitchforks up people's butts isn't based on anything in the Judeo Christian bible. Actual hell is a void totally separated from God. Which is the true torture of hell, having a soul stuck in a (figurative) box totally separated from his Creator.
Since dark angels (much like satan their leader) tempt mankind constantly with every kind of evil, and mankind goes out of it's way to destroy itself anyway, pragmatically, you're not completely wrong.
God created angels and humans with freewill, knowing full well freewill would lead to them turning on Him and each other. Catch 22 of freewill. If you have actual freewill you'll destroy yourself and others, if you don't have freewill you'll never get to actually choose. You can choose God's forgiveness, or you can choose total separation, but at least you can choose.
To long didn't read: good and evil are gravity and mankind is a man jumping off a ten story building and cursing God and the devil all the way down. He's not wrong: God created gravity. God coulda stopped him from jumping. Satan coulda done something other than point and laugh. And they didn't.
But we still jump, everytime. And God's there to catch us everytime, but we're still gonna aim for that car, almost everytime.