That's Dante's representation of hell. I always thought hell meant "the absence of god". Not a lava pit.
Indeed - read "Four Views of Hell." It's scholarly, and a discussion between 4 different theologians.
The idea isn't that God is "absent" - for omnipresence doesn't mean God is literally "present" in a pantheistic sense. Rather, one is exposed to a particular aspect of His personality - His complete and utter permission - but with a full and complete knowledge of who He is and why you're there.
In other words, it's the complete absence of restriction. Evil is punished by God allowing the residents to do whatever they wish with and to each other for all eternity - and He doesn't ever lift a finger to help. It's complete independence from God with respect to everything except your own existence.
Think of it this way. If this "space" we occupy now is "neutral," then the new earth would be + 1, and hell would be the same space, but - 1.
In Scripture, the final destiny of the regenerate isn't heaven. That's the inbetween place. Rather, their destiny is the New Earth. The destiny of all others is "hell." The "lake of fire" is just apoclyptic lingo for "the place outside the city," the rubbish tip of the universe - the furthest place one can be from God and His people - but yet within sight of them, so you know what you're missing. The greatest irony is that the one place that the people there don't want to be is the Great City - in God's presence - so, for all it's worth, while hating being there, they still want to be there - because the only other choice is with God - the very One they hate.