Classical physics is in no way negated by quantum physics. Classical physics (sans gravity to date) is completely derivable from quantum mechanics. That's why we use it in cases where the precision of quantum mechanics is not needed. Similarly, e.g. NASA still uses Newtonian physics in space flights, because using Einstein's relativity is simply overkill -- the errors are negligible (the only exception are GPS satellites where time dilatation must be taken into account). All in all, classical physics is only a crude version of quantum physics and Einstein's theory of relativity.

In the same way, one cannot deny free will. But yes, it would be probably better to speak about choice (and consequence) instead of free will. Whether that choice is conditioned (or to what extent) is a completely different matter. And of course, talking about either makes sense only within the realm of phenomena. Or in other words, that which you are can "exercise" its (ideally free) will, i.e. choosing, only as / within "its movement" (to paraphrase yourself). After all, to quote your (favorite) guru -- the world is illusory; Brahman alone is real; Brahman is the world.

Then again, we may talk about these "issues" till we are blue, and we won't say anything that would make sense to the deluded (neither would it unambiguously express reality). And the "seers" don't need these diatribes. Quite a conundrum :D