repharim – Who are you to say who will “burn in hell” and who won’t? You have no clue the size of any individual’s cheilik in olam haba. There are many sources in chazal, but the one that comes to mind immediately is the Iggeres HaRamban regarding how a person will be judged.
As for your proof, there are several errors, only two of which I will bother to mention. First off, the answer to your question “Do you really think Hashem covered parts of the Torah from am yisroel when he gave us the Torah…” is yes. I’ll leave it to you as an exercise to figure out.
A logical error in your argument is the tautology you use regarding two types of people. To see this, consider a person who cares about his soul. If “scaring” him does not bring him closer to Torah, then according to your reasoning, it must be that he didn’t care about his soul. But if he doesn’t care about his soul, then “scaring” him will not bring him closer to Torah. This is a tautology and does not constitute proof.