If god loves us, why does he punish people who sin to suffer the worst? (hell)?

Alright, so sinning is bad aye, is it THAT bad to go to bloody "hell" for it? To suffer the worst thing ever, to just be in a place that is the most dreadful thing you've ever experienced.. for eternity? Just because you did a few bad things in your life and didnt 'accept' god or whatever? Isnt god supposed to love us all? Shouldnt 'he' respect all the decisions we make and our opinions instead of punishing us for doing something we wanted to?