I believe God created at least two separate species. Our human spirits, and the race of angels. The angels never incarnate and have little choice but to serve the will of God because his power is obvious to them.
So the angels have little (or no) choice but to obey God because of his power. Sounds like God threatens them into obeying, at least implicitly.
There may be some truth in the story of the fallen angel, but the spirit world teaches there is no supreme devil. It has been said that sometimes the angels envy us our struggles, because they are all they can be. But we are on the long road of self discovery and free choice. We cannot be made perfect by magic and need to experience life for ourselves. We are all sons of God and we will all have to realize the power within us for ourselves over many lives.
In my experience, when someone says something happened "by magic" they mean (mockingly) "by some unknown force."
God wouldn't be making us perfect "by magic." Omnipotent, remember?
As for not letting your daughter touch hot objects, you cannot always stop her making bad choices in life, and she has to learn for herself. Sooner or later you have to let go.
No, I cannot always stop her from making bad choices. But at some point she grows up and becomes the best person to make choices for herself.
At what point in her life do I "let go?" When she's five? Six? Twelve?
Of course not.
My point is that based on your claims, God does just that. He "lets us go" in the sense of abandoning us when we are still children. Your Angels of Karma do not tell us anything, they just arrange for learning or rewarding or punishing experiences to happen without context.
If a person lives a hard life because of something they did wrong in a past life, how do they know that? Because some medium tells them?
My wife and I suffered the loss of our first child. If we asked a medium, he/she might say:
"It's a punishment for something you (Me? My wife? Both of us?) did in a past life. You ask what it was? I have no idea, just something bad. Accept it."
or perhaps:
"It's a learning experience that will lead to great accomplishments in your next life. Only you won't remember it."
or perhaps:
"You will be compensated in your next life. Only you won't know it."
Not a very workable method.