[zpharer]

I disagree with your second paragraph. I don't see how humanity being a product of time and chance implies that evil is an illusion. For instance, I think the claim "suffering is bad" is true regardless of whether a God or chance created humans.

This is a frequent misconception though. See the Euthyphro dilemma for a rebuttal. TLDR: are things right/wrong because god says so, or does God say so because they are right/wrong. The former implies a completely arbitrary morality. The later implies that morality is independent from God.

http://plato.stanford.edu/entries/metaethics/#EutPro