I really like Smart but don't see him as a PG as much as many do. I'd love to play him at SG and have Avery in the rotation long term.
Do we need shooting and size at other positions then? Yeah sure. But I think defensively and offefnsively too, that unit has a lot of strengths.
I see Smart as a defensive player, scorer, and play maker. Just because you can pass and you don't have the prototypical size, doesn't mean you aren't a SG.
Now, I think you could start Smart at PG and have a really good team. Not saying he will be as good, but this is basically how I view Westbrook (a SG starting at PG).
But personally I like pass first point guards, and Rondo is the best passer in the league in my opinion. I am in the camp of holding on to him and paying him fairly.