This concept is much the same as the last, only it cuts more to the heart of human misery in the real world. We keep doing the things that make us miserable and while we consider quitting our vices and bettering ourselves, we never actually do it.
So in this version of Hell, the damned suffer the pain of separation from God, but in other ways they might even be enjoying themselves. Imagine the "fun" guy at the party who happens to be a complete, miserable bastard. That's the idea here. You can repent anytime and claim your seat in Heaven, but we all know you're never going to actually do it.