Nate
You'll Never Walk Alone
So in your first paragraph you say he isn't good enough, but in your second, if we had better players, he would be? That's what is making me confused.What I'm saying is pretty clear mate, I think Smith at this point of time really doesn't have the know how to have any real success as a batsman at the international stage, but still his bowling in the limited overs format is good enough for him to compete for the spin bowler' slot.
If we had a solid in form middle order than I won't have had any problems with Smith at #7, but with our current batting depth (or the lack of) I don't think Smith if he's picked should be batting any higher than #8.
If you picked Smith at 8, where would the other ten overs come from?