Could it possibly be because smart is still including kernel-source in it's list of packages to consider for upgrade?  Did you even read the bug? This behavior hasn't changed since 0.42. Just to humor you:

<br><br><br>smart> remove kernel-source<br><br>Removing packages (1):<br>  kernel-source-2.6.18.8-0.5@x86_64<br><br>227.0MB will be freed.<br><br>smart> upgrade --explain<br><br>Upgrading packages (2):<br>  kernel-default-2.6.18.8-0.7

<div style="direction: ltr;">@x86_64<br>    Upgrades:<br>      kernel-default-2.6.18.8-0.5@x86_64 (upgraded)<br>  kernel-source-2.6.18.8-0.7@x86_64<br>    Upgrades:<br>      kernel-source-2.6.18.8-0.5@x86_64<br><br>64.2MB

 of package files are needed. 227.0MB will be used.<br><br>Confirm changes? (Y/n):<br></div><br>-- <br>Jon