Christ calmed the seas, after all. In my view, God allows the world's natural things to happen, not because He is indifferent about us, but just because that is part of living in this world and part of our life test. Will we still believe in Him even if bad things happen?
I don't believe that NDGT was implying that he must not be all powerful, but rather that he cannot be both all-powerful and all-benevolent and allow that to happen. That is a false dichotomy. In his view if God was benevolent, he would stop the Tsunami.
However, there are lots of reasons that he may allow such things to happen which do not stem from a lack of love. We often can't see it because we place a very high value on our own mortality, but an Eternal being who understands our eternal nature (that we will go on in another state of being after death and do not simply cease to exist) and knows what each of His children need, may not value whether you get a few more decades or a few more seconds as much as we might. Death comes for us all. A difference of values does not mean a lack of love. His ways are not our ways, and His values are not our values.
So, perhaps I misspoke when saying his statement was an oversimplification. It was really a false dichotomy.