Salaam,
The ranks in paradise make perfect sense as everyone has a different level of taqwa and some have struggled in their lives much more than others. They should rightfully get more as that is just.
Again coming back to the theme of paradise being a place of peace, pleasure and with no rancour, it follows that everyone will be happy and blissful, not jealous of others.
They will be so grateful to get their foot into the lowest rank when you compare it to the wretched hellfire.
If you think of people in this life, some are given more wealth than others, in fact there are so many degrees of wealth. Now are you saying that everyone is yearning to have more ? You wil find that so many people are happy and fulfilled with what they have been given by God and thank Him for it.
The same principle can be said of heaven with its ranks. You said that "how can you be happy in paradise knowing that Allah negatively judged you..."
He granted you Paradise ! Rather than looking on you negatively , He forgave you which should make you eternally grateful . So grateful that despite your mistakes he granted you paradise, utter bliss.