A Problem for the Classical View of Divine Foreknowledge

One problem every Christian must deal with is why the world is not a better place. There are certain conditions in the world which are great, but many that are not. One of the more striking problems for Christians is the belief that only a remnant will be saved. This is found both in the Old and New Testament. Narrow is the path to heaven, but large is the gate to Hell. Many will try to enter the narrow gate, but few will find it (Matthew 7:13-14). When that belief is connected to the belief that God knows all future actions, we have a problem. Why would God create a world where the majority of the people would not be saved? One answer could be that He could not create any world better than this one. This may come in the form of trans-world depravity. I find this implausible. What reasons do we have supposed that God could do no better than this world? The traditional concept of God seems that He would have enough power, knowledge, and creativity, to make creatures that would choose what is right (If He could foreknow their actions). On the whole, it seems very plausible that God could have created a world where the majority of people would have been saved. As long as that is correct, there are only a few moves one can make: (1) God has created multiple worlds, (2) reject the traditional idea of divine foreknowledge, or (3) bite the bullet. I am open to either (1) or (2). Perhaps God has created multiple worlds and this world was one of the less good ones, but still better to create than not. However, for those who reject (1), they must come to the belief that the traditional view of God’s foreknowledge is mistaken.