To be unfairly, or unjustly categorized as a commodity or non essential. Usually related to employment.
Often one is Smithed prior to being demoted or terminated if there is no just business reason for being terminated or demoted.
EDIT: aw sh*t, smithed again!"
*in reference to being asked how his sub sandwich was.
"I don't think that's a girl. If she is, she's pretty smithed. And has a large penis."