Was G-d Actually Involved Or Is The Chacham Not Noticing Him?

   At first I completely sided with the Chacham. I thought his philosophy made sense. Although I still agree with him, there was one thing he said that made me change my views of how I have always learned Torah up until now. Up until Thursday I believed that G-d was always in people's lives standing by their sides. I thought G-d was always walking next to the people. I thought that G-d's miracles and punishments always appeared in his people's lives. But if that is the case then why did the Chacham say that G-d made a flawed world?
      The Chacham says G-d made a flawed system of punishment because people sin then are punished in the next world instead of this world, causing them to repeat their bad actions. A person sins then continues to sin because no one is stopping them or doing anything about it. What confuses me is that back then wasn't G-d extremely active in people's lives like I learned from kindergarten up until now? 
           What is the Chacham saying that G-d did not punish them in that life? What about all the other punishments people got right after they sinned? 
         This makes me think that the Chacham is a little unappreciative. Back then G-d was very active in their lives. If that is the case then why does the Chacham say that it is a flawed system of punishment if they WERE punished on the spot and G-d played an active role in all of the people's lives? If only the Chacham stated his philosophy in this era where it is very difficult to see G-d's involvement in our lives. It seems like the Chacham based his philosophy off of this time period and our involvment with Hashem. So now the question is was G-d not really involved in people's lives back then and was that all a lie or is the Chacham just not seeing G-d in the lives of the people and does he think his involvement is not enough?