The mode allows beginners to fly without crashing or not losing the ability to fly back. The rotational position of the aircraft, or relationship of the nose of the aircraft to direction of flight, is irrelevant as the aircraft is slaved to the location of the controller. Both DJI and APM have similar flight modes where aircraft orientation is not relevant to flight direction. Pushing the stick forward will always make the aircraft fly “away”. Pulling the stick back will always bring the aircraft back “home”. Right and left stick function similarly, with all the right stick controls ignoring yaw, the one control function that screws up newbies without fail.
Will the “Smart” or otherwise named “Home” mode teach people how to fly correctly? The answer to that is no but it will allow people without flight skills to “buy and fly”, something critically important to companies that want to generate the most profit possible. Once someone buys the product it becomes a personal decision to explore the flight modes, learn the controls, and become proficient with their aircraft, or not. But they bought and made the seller happy, which was and still is the #1 priority of all businesses selling a product or service. The customer is not and never has been #1, they are in truth a money tree to be picked at every opportunity.
We can use trucks and automobiles and find marketing and features that serve a similar purpose. How many people would not be driving a car if they only equipped them with a standard transmission? The trucking industry pushed for the development of automatic transmissions for the same reason. A shortage of drivers that could operate 12, 15, and 18 gear transmissions, two stick transmissions, and multi speed rear ends required a simple, easier means of shifting gears. Doing that opened the door for a lot of uncoordinated people to fill the driver seats. All they had left to do was learn to back up and set up for the turns. For experienced, skilled multirotor operators the flight modes become “tools” to be used as conditions suit or require. They have to mentally “shift gears” when changing modes to maintain situational awareness.