The former you might as well be lobotomized or put on on such a heavy cocktail of drugs that you're not aware of anything around you. You won't feel any happiness, because to be "happy" you have to be autonomous. No matter how much torture and excruciating pain I'm going through, at least in my mind I'm still me.
It's this drive of wanting to hold on to 'my' self, 'my' rights, 'my' identity over anything else (even to the extent that you'd choose HELL to keep it?!) that keeps us from developing a relationship with God. Pride is the root of all sin, it's why Lucifer did what he did, and only when you get past 'everything I deserve' can God give you everything you need and then some.
As far as heaven is concerned, I don't think it's really a question of losing your free will. Time and again, sin is referred to as bondage. You're not losing your ability to sin so much as your desire to. It's like the ultimate version of kicking a bad habit. That's pretty liberating.
Perfect and good are not the words you mean here. Perfection would normally imply some sense of tolerance and acceptance, but that's not here. A better word is probably 'pure' because it has the secondary meaning of being "entirely homogenous", i.e. it is the embodiment/avatar of a particular group of concepts.
First of all, MrIndigo, thanks for approaching this discussion in a constructive and non-derogatory fashion.
Perfection, as applied to God, is in the biggest sense of the word. There is no room for imperfection to a completely perfect being. This is far beyond the sense of the word of merely being 'a really really nice guy'. While God is tolerant and long-suffering, He is never accepting of sin and cannot abide by it.
I don't have much in the way of a post-secondary education except for an art degree. I can't write well constructed arguments, or talk about science with any confidence. But I just want to urge you, if you have sense of concern for your eternal soul, to give the Bible a meaningful study.
This isn't about telling you what you're not allowed to do, it's about putting you into contact with the Creator of the Universe. Christianity isn't about rules and traditions, but a relationship with God that He makes very real in your life once you put faith in Him. Not 'believes that He exists', but trusting Him enough to put your very life in His hands.
You can ask all the questions, 'why did Jesus have to die?' 'why did God create Hell?' 'why does he let horrible things happen if He's omnipotent?', but none of it will be meaningful to you until you ask it with a real sense of urgency and wanting to know, rather than as an attempt to deflate another person out of your own self-satisfaction.
I don't know if I would even post in this thread if not for His ongoing demonstrations of love and power in my life.