Well why would a god randomly assign suffering to people (because it obviously isn't based on any other criterion)? Yes, you can postulate that the suffering is for crimes in a previous life, but I feel we have become used to engaging in tortuous explanations for this puzzle, assuming the God can do what he likes, but maybe the truth is that he only has finite power - it makes a lot of sense.
Anymore, I tend to think of “God” as the collective consciousness which we are all part of. How accurate is that? Who knows, but it currently feels right to me. I also think that this lines up with your idea of a “finitely” powerful “God.”
It would be interesting to see a compilation of the different views of various philosophies and religions concerning the topic and meaning of sufffering. Sounds like a job for Jim Smith lol.