If you are trying to do what you know to be right then you have lost nothing. If you aren't trying to do what you know to be right then revealing himself to you could very well get you cast out, which is not what God is in the business of doing.

So why has he revealed himself even at a low level of confidence? People supposedly already know right from wrong so that's not it.

If his revealing himself helps people to do right rather than wrong more than it imperils them, then in his not revealing himself to me I have lost something. (It's less probable that I will do right and thus I have been imperilled.) If he helps at a particular level of confidence less than he imperils then it doesn't make sense for him to reveal himself to anyone. If they're equal then there's no purpose in it.

Assorted thoughts on the rest:

That is, there are reasons God operates the way He does and they are directly related to why we are here on Earth.

Eh, there's a tension between power and justification. If you take it to the extreme, omnipotence and reason are mutually exclusive criteria. (Outside, perhaps, of an inability to commit logical contradictions, but that doesn't really seem to be involved here.)

Therefore the goal is to have us obtain the same state of power and knowledge that God has and just as we do not wish to give god-like power to an AI that is then going to screw things up so too God does not wish to do the same to us.

I'd be more than happy to give symmetrical power to an AI, assuming I had godly powers. The whole issue is that a recursively improving AI might become far more powerful than ourselves.

Those of us who get born on Earth did not fall but followed what was right when we knew for a surety that it was right.

Why do we need to qualify to return if we followed him and didn't fall?

Due to this state of failure, or sin, to follow what we know to be right we become unworthy of entering back into the presence of God.

Above you said we were here to gain a body and to qualify to return to the presence of God. However, if we become unworthy of returning to God that removes a lot of the reason for being here. Why not be embodied and immediately die? The purpose of life then having been completed.

As to eternal life it is up to us on earth to live according to what we know to be right. Not what we wish was right but what we actually know to be right.

You've already said knowledge is an incredibly high degree of confidence – indeed you've said that it's practically indistinguishable from certainty - which you've in turn tied to proof. I've seen no proof of right and wrong. A feeling certainly isn't proof; asides from anything else I've felt different ways about ethical issues at different points in time. Then you have the cultural variances in preferences and emotions....

This is the primary way with which God communicates with us as it testifies of the truth and lets us know what is right. It is also easily drowned out by other emotions and feelings and easily confused with other things (uncontrollable crying, a sense of community, trances, babelling incoherently, a sense of confusion are common things mistaken for the spirit) .

Again you've tied knowledge to being a high degree of confidence. If it's easily confused with other things then it doesn't provide that high degree of confidence. It also has the same problems as communication in general concerning its purpose. If the value of the guidance of testimony is exceeded by the peril of knowing more then it shouldn't be done. If the inverse holds then it should be done for everyone. If they're equal then there's no purpose in it one way or the other.