What is the point of free will?

Why would God give us free will, if we'll be punished if we live a life He disapproves of? It's like sticking up a bank and telling the hostages, "Sure you can leave, but if you do, I'll shoot you." We can live however we choose, but if it doesn't meet His requirements, then we have to suffer for all of eternity when we die? Seems like a sh*tty deal to me.