I just dont get this logic.
Smith took over a PL/Champ yo-yo team, with a squad that is really high quality for the Champ.
Nobody realistically expected him to keep them up last season (even if that was their hope - anyone could see it was highly unlikely), i think the real expectation would be to have taken this very, very good squad (for championship level), add a couple of quality players, get automatic promotion and give the PL a reasonable shot next season.
I think personally, that Norwich when Smith took over, was a great job for a manager, yes relegation was pretty nailed on, but Norwich have yo-yo'd for a few years now, they have plenty of cash in the bank, a bit of money to spend if needed, and a quality squad for the level they are at.
If Smith cant get a tune out of that Norwich squad, then its entirely on him and his coaching staff, many, many managers would give their right arm to be given the chance to manage that squad in the champ.