Is classic the better coin to currently make a smart contract with?
If immutability is a desired attribute, ETC is the only choice.
If you want to make a too-big-to-fail contract which is (given sufficient Proof-of-Vitalik) eligible for troubled asset relief, go with the Bailout Edition.
Indeed. The whole point of smart contracts is that the code will do as it's programmed. And that is exactly what happened with the "DAO hack", the code did as it was coded. Everything else is not a smart contract. They broke the concept of smart contract by going bailout over it. If a smart contract contains code that didn't do what you expected, it's your fault for using that smart contract/the coder's fault for coding it that way. Hard forking over this absolutely defeats the point.