My answer is no. Evil is not a thing to be created. It is a choice. One cannot "create" love, one can only choose it, right?
The same holds true for evil. One cannot "create" evil. One can only choose it. God, being Supremely wise, holy and loving, has the capacity for evil.
However (and this is a big however), being that He is Supremely wise, holy and loving, He eternally CHOOSES goodness. He eternally chooses love. THIS is the gift of Free Will that He imparted to us. If God doesn't have the capacity for evil, then God is not all-powerful. God wouldn't 'need' free will because He'd be incapable of evil. However, God IS all-powerful. The difference between Him and the rest of us, however, is that He's always chosen goodness and love over evil and hatred. Thus, God must have free will if He was able to grant it to us as a gift.
So, keeping His Perfect Example of free will in mind, let's move on.
God did not cast them aside in judgement. They chose to dislodge themselves from His Goodness through pride. As a result, God, in His Goodness, created a place for them separate from the other angels who chose Goodness. Basically, He put the "bad kids" in the corner so they didn't disrupt the rest of the class. Those who wanted to continue to grow in love and understanding of God could remain with Him in Heaven.
Then God deemed it time for the physical realm to spring forth. After setting things into motion, He chose to bestow upon humanity the same gift given to the angels - free will. However, humans are intrinsically different from angels. Angels are purely spiritual beings. Humans are the union of body and soul (which is why Catholics believe in the "resurrection of the dead"). As such, our free will is going to be utilized differently from that of the angels (though with the same premise... freely choosing good over evil).
As we all remember from our elementary days, the Tree of Life and the Tree of Knowledge were located in the center of Eden. The Tree of Knowledge, when we trace it back to it's Jewish roots, was known as the Tree of Knowledge of Good and Evil. This is an important distinction because Jewish tradition understands this Tree to be the mixture of good and evil. Until humanity (through Adam and Eve) ingested this fruit (thus introducing the conflict of evil), good was humanity's nature. Evil was something altogether separate that had no place in the nature of humanity. We simply understood and trusted that God knew best, and we willingly went along with the plans He set forth because we naturally understood Him to have our best interests at heart.
That changed due to the 1st sin (which was Pride, not disobedience). When the serpent suggested to Eve that she could gain the knowledge that God had and begin making her OWN plans that would be even better than those of God, she was feeling the temptation of pride. When she acted out in eating the fruit, it was not disobedience that goaded her... it was her own pride. Her mistaken belief that she could somehow gain wisdom above God's. That given the chance, her will could rival that of God's. Sound familiar? It was the very same sin that Lucifer introduced to the other angels. It was the very sin that caused their downfall as well.
Out of love, God sentenced us to a physical death so that we might once more reunite ourselves to His Will. Since humanity had marred its nature through sin, God rightly passed judgement on us, deeming us unfit to reside in Eden as that was a place of peace and unity with God's Will. Humanity, having now turned from God's Will, would be forced to work their way back to their original Divine Inheritance. Free will, having been gifted at our time of creation, was not taken away. Instead, as punishment for misusing this gift to alter our purely good nature, we would need to learn to properly use this gift for love.
Upon death, we are judged on how well we learned this lesson. Did we consistently strive to love others? Did we consistently choose good over evil? Did we trust in the Will of God to move our lives in the direction necessary to once more gain eternal happiness?
If the answer is a resounding "Yes," we gain entrance to Heaven. If the answer is "Eh, it was a hell of a struggle, and I've got a ways to go, but I at least learned that Your Will is right" we gain entrance to Purgatory with the promise of Heaven. Finally, if the answer is, "No, this is all bull, God, you're just a big bully" we cast ourselves into Hell.
And yes, I said we cast ourselves. Much as those original fallen angels had.
At judgement, we see our own lives in the Light of Divine Truth. We see our souls as God sees them, and in the face of this Truth, we cannot help but understand our successes and failings. We, ourselves, pass sentence before the Throne of God (before which no sin or dishonesty can stand). We accept whatever "reward" we are given because at that moment, we cannot help but understand God to be Supreme Justice. Thus, our soul either joyfully enters Heaven (where our free will exists, but has been perfected so that it is united always to the Will of God), willingly enters Purgatory (with the understanding that our free will can be cleansed through the fires of God's Love in order for us to prepare for Heaven), or willingly seeks Hell as the only respite from ourselves away from the burning Justice of God's Truth.
In His Mercy, God grants us enough trials and experiences through our lives in order for us to properly learn Love. This was revealed by Saint Michael to someone whose name escapes me.
St. Michael the Archangel revealed that every person on earth is given exactly what he or she needs to learn how to live by God's Will. It is up to us to heed these lessons. They don't continue in Heaven because at that point, all free will ceases to formulate through one's own accord. It is either solidified with access to Heaven, becoming engulfed in the Divine Will, forged through Divine Love in the embers of Purgatory, or left to fester with no hope of respite in the bowels of Hell. Our actions on earth determine which area our free will goes for a make-over (if one is necessary) after earthly death.