I believe the idea is that yeah, those things suck. But if they weren't there, something else would happen that would suck more (maybe god gets to choose every time something terrible happens whether or not he wants to break causality. And the last time he did it there was a glitch in the system and a bunch of people had their firstborn children die because of a numbering error in the lineage system). Like causality breaking down.
God is worshipped for more than that, though yes, usually respect is given to one who is powerful. I'll ask you how many people there are who don't want people to like an appreciate them, especially if they've done something for them. For that matter, how many parents don't want their kids to love them, and will punish them if they mouth off? Like, three parts of all good all knowing and all powerful don't fit, yeah, but someone doesn't need to be all three of those things to be worthy of praise or respect. Worship? I mean, that's basically how gods worked back then. You praise the god and offer it sacrifices and it protects your village/town, makes sure the crops grow, and so on. It was how it worked. It's more or less how feudalism works too, except there you don't get to effectively choose your own taxes, though whether your fields got burned and towns pillaged was still largely random, depending on your lord.
I understand the sentiment; I don't like bullies. But if hell isn't actually fire and brimstone for eternity, it's just not Heaven, then it's hard to blame the guy. Yeah, yeah, no eternal paradise for infinity and that's just as bad as torture for infinity except no, not really.
People who had no way of possibly knowing about God are a whole different matter, with plenty of theological debate about it.