What we decided was to stop using Smarty for new development. We’d like to see it removed from the old code also, but of course that will happen only as the developers find the time and inclination.
Yes, I think the appeal of Smarty is primarily for organizational and political reasons. I.e. if you make people use a tool that doesn’t let them do “real” programming, then they are less likely to screw something up, and also less likely to develop their IT skills and move on to a better job elsewhere.
That’s my attempt at a Scott Adams* interpretation.