I don't believe that God purposefully sets us up to fail, but He does give us freedom to CHOOSE. There WILL be times in life when we are tempted, but it's NOT our job to put those temptations there for others. God doesn't do that, it's our sinful nature that causes those situations. Think about the people who tempt us to sin...prostitutes, drug dealers, criminals...I do not want to be likened to them! I want to truly LOVE my children as commanded in 1 Cor. and ...'not rejoice in wrong doing'.
I parent the way God parents me. Absolutely. However, I DO NOT equate myself TO God, the way the Pearls do. I don't need to set up situations to tempt my children. God can handle any situation my children will be in, I don't need to interfere and create some fake, arbitrary scenario. My job, as a Christian parent is to love God, and teach (not beat) my children about Him. I lead them to the bible, and God does the rest. I lead my life as closely to Christ as I possibly can, knowing that His grace and sacrifice covers all my mistakes and short comings. God is ALL about relationship. The obedience comes as a result of that relationship.
God does not set us up to fail, in fact He does everything He can (short of taking away our free will to choose) to help us follow Him. Every single one of His commands is for our GOOD, not for His convenience, like the Pearls suggest doing with our children. Children are commanded to obey their parents "IN THE LORD" NOT unquestioning, unfailing, first time obedience. And thank God! For I am as much a human as they are, and I make just as many if not more mistakes than they do.
I'm sorry this has caused you so much grief. I totally understand how it can cause doubt and agree that the Pearls are truly evil and twisting scripture. I pray that their eyes are opened. I pray that they experience God in all His majesty, His glory, and His mercy, so that they can see that parenting doesn't have to be so cruel.
Jesus paid the penalty. For everything. And EVERYone. Young and old. There is NO reason to punish, tempt or hurt our children.