@El Gaith. Thank you for explaining this, I came to the same conclusion and yet so many reviewers have gotten it wrong…Smith was not bluffing and thus using the film to his advantage for personal gain…Smith was also convinced to some degree and petrified of having millions of his own people annihilated.

I have to disagree. Killing a high-ranking Nazi would only make him a martyr (but would still hold some propaganda value). However, showing him to be a morally bankrupt hypocrite would be an even greater propaganda success for the Resistance and a lot more damaging to the system.