Existence vs. Non-existence.
Via existence, we are capable of experiencing pleasure, or pain; and life encounters both. Eternal life encounters both. Damnationalists believe it diverges at the fork in the road, some to the experience of never ending pain, others to never ending pleasure. Universalists believe in no fork in the road, but life unto pleasure, or life unto pain so that pleasure may be reached - where pain itself becomes the medium by which that pleasure (such as the pleasure of God’s presence and pure-heartedness) can be gained through Christ’s sanctifying will; by pain being purified so that pleasure becomes available to be experienced.
What existence presents, ultimately, is life with the capacity for pleasure and the experience of it. The pleasure of existence which I as a Universalist believe will be had by all, because the experience of never ending pain is not necessary, it serves no good purpose for remedy or justice; it can only serve vindictively punitive ends. Pleasure however is a homeostatic state, varying from oblivious joy, to subtle tranquility. This homeostatic state is God-designed, and God-desired for his creations. Pain after all, is something that tells us when something is wrong, something that alerts us to an imbalance in our homeostatic state - a state which is normally pleasurable; a homeostatic state which is meant to be the norm.
It is in existence, and its capacity for pleasant experience, and its promise for eternally pleasant experience; meaningful, fulfilling, edifying, beautiful experience - especially and fundamentally with God - that we find thankfulness. God-given existence is what ultimately allows us the capacity to prosper and be blessed to be a blessing; blessings for which gratefulness is reasonable, and wonderfully applicable.
Non-existence however, entirely lacks that very capacity to experience being “better off” as there is no experience possible with which to judge being “better off”, something that only exists in an existent entity capable of experience.
Though non-existence would be a “better” state than never ending pain, the person itself would have no capacity to judge whether they are better off or not. God might, Christ might; but not the non-existent person having been annihilated. The problem is that it isn’t a very good expression of mercy to make a creature cease to exist for any length of time, and certainly not forever. It is a worse lack of mercy to torture them forever, but to make them cease to exist forever is a divorcement in which God has forsaken his creature entirely by putting between them a nigh impassible gulf; between Himself who IS, and the person who now Isn’t.
The ceased person is incapable of experience, and therefore incapable of gratefulness for the supposed mercy bestowed upon him, neither is he able to cry out for greater mercy; as might be possible at least in Hell, and is certainly possible in the Universalist’s purifying Hell. Annihilation in that respect is a deeper death than Hell because it is permanent with which there is no turning back, where as Hell at least shows hope of rescue if God is loving.
In regards to not existing being no worse than existing, or no better; non-existence is not capable of rendering judgement on whether or not a situation or another state of being (requiring existence) is worse, better, no worse, no better, or neutral - where as an existing entity is capable of rendering judgement on the issue, at least at a theoretical or hypothetical level. The existing entity has the capacity to imagine to some degree, not existing. The non-existent is not capable of imagination at all, and thereby incapable of judgement even in a hypothetical sense. That is where the category error lies.
The existent entity is capable of being grateful for his existence, even in the throes of pain from which he has hope of relief, relief for which he too can be thankful. The non-existent entity is incapable of being, let alone verbiage.
Existence, being, one might suppose, is the fundamental stuff of God; of whom IS, and thereby is the very fabric and essence of Existence itself - is also the foundation by which Meaning is ascribed to existence, and the existence of entities such as Creation and the creatures in it.
Non-existence is something entirely apart from God, apart from Existence, and thereby incapable of Meaning or ascribing Meaning or Meaninglessness to any entity.
Meaning demands Existence, and if God is Existence; Existence demands Meaning. Non-existence is incapable of any demand, and is likewise incapable of rendering either Meaning or Meaninglessness.
It is because of Existence that we are capable of, and have access to Meaning; and by these two faculties of Reality we have reason to be grateful - and ultimately grateful for the experience of Existence which brings the experience of Meaning.