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Hi,
In photoshop, when you convert a layer into Smart Object, and then apply effects to that layer like gaussian blur, you can reduce or increase the value of the gaussian blur. Which is not possible in normal layer.
Resizing a Smart Object does not pixelate the image.
If you are doing an animation in After Effects, and you want to send the image from photoshop to AfterEffects, you first have to make all the layers as Smart Object (separately, so that you can edit them in AE(optional)).
All you have to do is right click on the layer and select "Convert to Smart Object"
So, it turns out turning images, layers into smart objects is useful.
hope you found the answer helpful.
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