Yep, that's correct. He would have known that some would go in there, despite his efforts and desires. Anticipating your next move, I'll say this: With regard to final fates, the Bible only uses "prepared" in only two senses: Heaven and kingdoms and feasts and salvation were prepared for humans, and eternal fire was prepared for the devil and his angels. The Bible is quite consistent in this.

The Bible pictures it this way: Let's suppose there are two doors, one leading to eternal separation from God, and one leading to eternal joy in his presence. Door #1 was only prepared for Satan and his sycophants, and door #2 was prepared for all people. Jesus is standing between the doors, and as people approach, he expresses his love for them and invites them to enter door #2 and bliss. But when people grab the handle to door #1, he cries out to them, "Don't do that. It's a terrible thing. You don't want to go there. Come this way, into door #2." But they choose to enter door #1 anyway. He knew some would do this, but that fate was never meant for them, and he's still doing everything possible to prevent anyone from going through door #1. His knowledge that many will still go through door #1 has nothing to do with his intent that none do it, and his having prepared that place for Satan and his demons alone. Knowledge has nothing to do with causality.

We are free agents, and the choices we get to make regarding spiritual truths are real choices. God does not force anyone towards heaven or hell. Those choices are ours alone to make. Jeremiah 18.1-12 is instructive in this way, even pertaining to prophecies, let alone issues like salvation. Our freedom and free will are so vibrant that despite the Lord's purposes, God adjusts his plan and actions based on our responses.

Why would he make people who are bound for hell? 2 Peter 3.9 says that God doesn't want anyone to go to hell, and Mt. 25.41 says that hell was never prepared for people to be in it—that was not the intent. God is always pulling all people towards himself (Mt. 11.28; Isa. 55.1-3). God didn't make anyone bound for hell. There is always a legitimate choice people are invited and encouraged to make to come to God.

But even if he never intended for it to be occupied by humans, he would've known that humans would occupy it in the future...right?

We are free agents, and the choices we get to make regarding spiritual truths are real choices. God does not force anyone towards heaven or hell. Those choices are ours alone to make. Jeremiah 18.1-12 is instructive in this way, even pertaining to prophecies, let alone issues like salvation. Our freedom and free will are so vibrant that despite the Lord's purposes, God adjusts his plan and actions based on our responses.

Why would he make people who are bound for hell? 2 Peter 3.9 says that God doesn't want anyone to go to hell, and Mt. 25.41 says that hell was never prepared for people to be in it—that was not the intent. God is always pulling all people towards himself (Mt. 11.28; Isa. 55.1-3). God didn't make anyone bound for hell. There is always a legitimate choice people are invited and encouraged to make to come to God.

Mt. 25.41 says that hell was prepared for the devil and his angels. There is no deeper culpability than for those spiritual beings who knew the presence of God and his full glory. Hell was never intended for humans. It was never God's desire that any person go there (2 Pet. 3.9). There's a Book of Life, but there's no Book of Death. But people who reject God choose to be separated from him, and they will go to a fate that was never meant to be theirs.

So here's the true scenario: God loves you (Jn. 3.16), knows that you can't save yourself (since no one is worthy), and so has made every provision for your rescue, offering it as a free gift to all comers. We must repudiate what separates us from God (repent of our sins), and turn to him in love (very different from "religion". It's much like a marriage ceremony, where you forsake all others to commit yourself in love to the one who loves you.) But since love must always be chosen and never forced, he informs and invites all people to come to him for rescue (salvation). The choice is each individual's, and always ours. No worthiness is involved, but only choice and love. All sincere comers will be accepted. All who refuse and choose to have nothing to do with God will endure the consequences of that decision: life without God, and eternity without God, if they get all the way to the end of life spurning his every invitation. They weren't created bound for hell, and Jer. 18.1-12 lets us know that they always have a legitimate choice to do as they wish with their lives. God will adjust according to their free-will choices. The path to hell is never a certainty unless the person in question makes it such.

Why would God make people who were bound for hell? He knows everything that would happen, and he made us knowing that we'd end up in hell. Sort of cruel if you ask me.