Anything which sucks profusely. Used to represent something that not only sucks, blows or is otherwise just terrible but is totally and utterly horrible. In this instance smoking is a term used to represent felatio or sucking cock. Cheesy dick is used to not only represent the case of a man with cheese dick but also to represent something really cheesy, corny or lame.
1. "This is the worst game I've ever played, it fucking smokes the cheesy dick."
2. Jim: "This party fucking sucks."
Ned: "No shit, it's totally smoking the cheesy dick."