I guess Steve's taking this to the extreme just to make us think. I agree with the thought that just feeling sorry for people doesn't make any difference. (and yes, before you ask, I am trying to do something)
Though, in a world where there is limitless possibilities, if we agree that we don't want some possibilities (disease, war) then there should be limitless possibilities left that we could experience. I haven't studied math so much, but aren't there something similar there?
Maybe if we could go beyond earthly sufferings, there are new areas of experiences that we can't imagine right now?
There will never be good in bad things. The good comes from within people, that they make something good FROM the bad, e.g. grow consiously.
In my subjective reality the bad things that people do to each other are continually decreasing with time.
/English is not my language, so please read my mind