Where I disagree with your view is on equating Hell with Sheol and Hades. I view Sheol and Hades as being a place for all of the dead, and I say this because even the righteous are said to be in those places like the Psalmist in Psalm 88:12. Wasn't Abraham in Hades?
Yes and No. Prior to the death, burial and resurrection of Jesus, all souls went to Sheol/Hades. In the story of the rich man and Lazarus, Jesus revealed Lazarus on one side, called Abraham's Bosom, while the rich man was on the other side in torment. While on the cross, one thief asked Jesus to remember him when He came into His Kingdom. Jesus told him that he would be with Him in Paradise that very day. He did not say they would be in Heaven, but Paradise. The Bible tells us what happened when Jesus died and entered Sheol/Hades. Notice 1 Peter 3:18-19
For Christ also hath once suffered for sins, the just for the unjust, that he might bring us to God, being put to death in the flesh, but quickened by the Spirit: By which also he went and preached unto the spirits in prison; Now look at Ephesians 4:8-10
Wherefore he saith, When he ascended up on high, he led captivity captive, and gave gifts unto men. (Now that he ascended, what is it but that he also descended first into the lower parts of the earth? He that descended is the same also that ascended up far above all heavens, that he might fill all things.) So based on these verses we see at Jesus' death, His spirit entered Sheol/Hades and preached the Gospel to those in Abraham's bosom. Then when He ascended to Heaven, He took those spirits with Him. We are now taught that when believers die, our spirits go to God's presence in Heaven: 2 Corinthians 5:8
We are confident, I say, and willing rather to be absent from the body, and to be present with the Lord.
Non-believers still go to Sheol/Hades until the end time when they will be brought up to stand before God at the Great White Throne Judgement. Look at Revelation 20:11-15
And I saw a great white throne, and him that sat on it, from whose face the earth and the heaven fled away; and there was found no place for them. And I saw the dead, small and great, stand before God; and the books were opened: and another book was opened, which is the book of life: and the dead were judged out of those things which were written in the books, according to their works. And the sea gave up the dead which were in it; and death and hell delivered up the dead which were in them: and they were judged every man according to their works. And death and hell were cast into the lake of fire. This is the second death. And whosoever was not found written in the book of life was cast into the lake of fire. Notice death and Hell (Hades) gave up the dead and then both death and Hades will be cast in the Lake of Fire along with all non-believers.
Thank you for showing Sheol/Hades being a temporary holding place for the dead. Hopefully I have shed some light on the current purpose of Sheol/Hades.