If God is all powerful, then he can create a weight so heavy that he cannot lift it. And then he can lift it.
Well, God's children have fallen. A weight so heavy. And yet he can lift it.
Why does he not do so? Your question becomes, if God is all powerful and all loving, why does he allow suffering or evil to persist? Why does he allow us to be hurt, or to harm one another?
An answer that makes sense to me is that we are God's children, but we are God's adult children. He does not want to put up a curfew and order us home. He wants us to act like adults and grow up. He wants us to decide for ourselves whether we want good or evil.
Why does he wait? Because he can, with utter confidence. He knows that he is all powerful and all loving, which means he can heal all. In fact, he has made us in his image, which means that we, too, are all-powerful and all healing. If we choose Peace and God, we can heal ourselves with God's help and become one with God. And, because we, with God, are all-powerful, even our past, even our memory will be healed, and it will be as if we were never lost, or hurt, or harmful, at all.
This is, at least, what I believe. One spiritual tradition that sees things this way is called A Course in Miracles. Please see my hub, What is a Miracle? for more.