Did God create evil? OK, yes. By intention even, or knowingly, since He knows all. It is an unavoidable consequence of being all that is goodness and love, and creating beings that can choose not to, that indeed are incapable of, living up to the example He sets.
Jesus was the living, human example of this goodness and love. A real, in the flesh example of all that we should hope to be but can never truly realize. In this manner, just by living our lives more in accordance with His will, we increase the dichotomy, we underscore the difference between good and evil. Hopefully, in doing this, others realize that goodness and love are attainable attributes, even if imperfectly so.
That is where our attitudes can be beneficial or detrimental. If we choose to condemn, despise, and look down at those who fail to live up to this ideal, we tend to increase the sadness and evil in this world. When we attempt to help others and live by example, we can hopefully inspire others to attempt, if imperfectly, to strive for goodness and love. This does not mean that we condone evil, only that we hope to transform it through our own actions. The Lord has already provided the perfect example to follow, in that we are all forgiven, though we all fall short. Can any of us ever be as gracious and loving as that?