i want to look at this from two points of view, but i'm not sure i've thought either out fully.
First, we definitely have the appearance of free will. We can see ourselves being in any given situation and making a choice which affects our life. So we appear to ourselves (and presumably to others) to have 'free-will' now causality may mean that our past expierences cause us to make certain choices but this is not apparent (ie decision making has the appearance of being free and willed)
I've often (ok, maybe once) thought of free-will as an illusion, but one which is unbreakable. However the question this raises for me is, if a thing is illusion, but you take away the prime attribute of this illusion - by making it firm and unbreakable - then is it's nature really the same?
Secondly. Not having studied philosophy, I have to fall back on my physics. So to answer the question of whether or not God's knowing the future somehow prevents free-will and morality, well I have to take my answer from Quantum physics. No, that the future is set does not make it knowable to US - until a thing has been observed it exists in a undefined state - at least according to quantum physics. So it doesn't matter if it is all pre-determined, if the universe is deterministic - quantum physics describes a deterministic universe which never-the-less has random manifestations.
A wave-function (which is a probability amplitude - or a mathematical tool for describing the universe) is fully deterministic, how it evolves doesn't depend on what the experimenter does. The phenomina of wave funciton collapse is odd.
It's like the wave function was free to choose which state to be in (like, say up or down, with a 50% probability of each) it's like the experimenter destroys this probability distribution by observing what is really going on.
Until then it is only defined as a probability amplitude.
And htis appears to be the actual way the Universe is built.
Mathematically the wave function - and it can be extended to describe more than just a single electron or photon, it just gets very complicated very fast, the mathematical tool for describing the probability amplitude of the whole universe is deterministic - it evolves along specific set paths, and yet any specific interaction (or measurement) is indeterminant - that is a measurment is apparently random - that is to say, within this completely determined system, thigns occur seemingly at random.
So the idea that God determining the entire course of human history does not preclude the idea that human interactions are completely unpredictable (at least from my understanding of quantum mechanics)
Finally to morality. With a completey causal Universe, morality can be a cause. Comparing to the human body, cells have certain functions and signals are transmitted to them to trrigger certain behaviours. (whether that is removing toxins from the blood or forming scabs over a wound.) If a cell misbehaves it will be destroyed - or if it's suicide mechanism is broken it will become cancerous.
Morality is a system for telling humans what functions are benificial to the social order, what is correct behaviour and what is misbehaviour - it causes us to make certain decisions and respond in certain ways to certain signals. Not behaving in the right way will cause us to be removed/killed. Not being able to correctly respond to the signals may result in suicide (where the 'signals' society sends result in depression and suicide)
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We are responcible for our actions because we appear to be in control of those actions, and morality faults us because that's what it is there to do... show fault and send the signals of what is healthy...
at least thats my 8 cent.