I would say that yes we have free will, but within the confines of our box. Everyone lives inside a box. We certainly like the idea of thinking outside the box, but invariably that leads to dissatisfaction.
The box is society, family, nation, financial, education, fears etc. All the things that keep us in the cave. It is nearly impossible to 'think outside the box' unless there is a window on one of the walls of your box. You need that window to widen your frame of reference. And a problem is that YOU may think outsede the box but your associates do not.
I personally do not think that society as a whole has been going downhill. Our boxes are getting larger as societies interact with each other. The danger as I see it, is that truth in each society is relative, as you say, and as the truth of one society bumps up against the truth of another society there is social confusion. However, the portion of absolute universal truth that is in each survives as the more relative truths fall away. During this time there are victims and societies often do not survive without adaption of the higher universal truth. But greater societies emerge and come to the fore.
For example, today we have a clash of capitalism (individualism) vs socialism (group); Christianity (self-centered salvation) vs Buddhism (salvation for all); self-gratification 'me' generation vs mutually dependant society. This is a problem as there seems no viable 'mutually dependant society' counterweight to the 'me' 'I'm saved, to hell with you' society. Society is crying out for this balancing truth. History does show however that balance will come even if it means the destruction of the current empires.
There is an absolute truth and we are climbing out of the cave in search of it. If there were not, there would be no advancement.
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