I still don't understand how the Classic is supposed to be utilized, I know it's supposed to be an homage to TFC but it just doesn't seem to translate very well into TF2
Yeah the Classic really needs a buff. It's by far the worst counter-sniping weapon (even worse than the sydney sleeper) and it doesn't have a paticularly useful advantage compared to the other sniper rifles.
Sure you are able to crawl around corners and headshot heavies that are right infront of you but the maximum DPS of it is ridiculously low. I really don't know why they lowered the bodyshot damage either because the Classic heavily relys on those.
In TFC the sniper rifle has a knockback effect which increased by charging the shot. Adding that to the Classic would turn it into a more unique and useful sniper alternative. Or they could give it a slightly faster charge time and remove the bodyshot penalty.