The Classic style is not defunct by any means.

In fact it's more powerful than the Windows 7 style (because it allows you to add subitems). I assumed you might be interested in the Windows Aero *skin*, so I recommended it since that's what 3.6.8's *default* Windows 7 style applied. The skins for the Start Menu are designed to match the Windows theme you use, but you can pick any skin you want.
On Windows 7 with the Aero *theme*, the Windows Aero skin of the Start Menu looks more appropriate. If you are using the Windows Classic theme, then you can use the Classic skin of the Start Menu. If you are using Windows Basic theme, then you can use the Basic skin of the Start Menu.
Neither the skins, nor the style are locked to the Windows themes, you can mix and match but they may not give the best results. For example, Windows Aero *skin* of the Start Menu will look weird with the Classic Windows theme.
Since Classic Start Menu focuses on giving the user unparalleled customizability, you can also turn the Windows 7 style menu into a cascading menu if you want that. To do that, after you set the Windows 7 style, go to the Main Menu tab in settings, and set "All Programs style" to "Cascading sub-menu". This gives you inline search results in the main menu and also retains the cascading submenu for All Programs.
In Classic with two columns style, search results are displayed in a submenu.