TL;DR: in 2021 is there any benefit/reason to ever use smart recording over 1-sec recording intervals?
Back in the day the choice was simple:
1-sec = most accurate recording (every second) at the cost of larger files (which sometimes mattered back then) and reduced battery life
Smart recording = device decided on how often to record based on activity/movement/direction change to reduce file size and battery usage, at the cost of accuracy (to a greater or lesser extent depending on the device and its programming).
There were also nuances with fitness metrics: 1-sec gave more data points, in fact I seem to remember if a power meter was connected 1-sec would be used regardless of this setting.
Has anything moved on? Ie. has smart recording got any smarter, or is it now irrelevant due to virtually non-existent file size limitations etc?
Over on the GPS handheld side of the fence, it was put forwarded smart recording could be more accurate for activities where you are stationary for a period of time (eg. hiking with a lunch stop) as the device would not log lots of unnecessary points each with a degree of error thus might look like movement. I'll be honest I hadn't really considered this before as most of the activities I do involve constant movement, or I pause the device manually.