Flames don't need Smith to be that elite starter. The Flames made the playoffs due to a hot hand from a backup (Johnson) that saved the season, and then another hot hand in Elliott (who played terribly before and after) to get into the playoffs. The Flames essentially experienced below average goaltending (which was a big increase from the season before) for the vast majority of the season.
They need Smith to be average. Consistently average. For all the hand-wringing that is going on about his age, he is only a stop-gap. Treliving made that abundantly clear (without stating it outright) in his interview.
We need this stop-gap to provide the Flames with fairly close to average level goaltending consistently all season. I believe every statistical measure shows Smith being better than average, and doing so on a pretty crappy team behind a pretty crappy defence. I am ok with this. I am more ok with this than spending more for Fleury (who is inconsistent and a stop-gap), or rolling the dice with at least a 4 year deal on Mason (who to me seems a lot like Elliott in his 'elite level' play, confounded by terrible play for stretches).
2 year stop gap at league average is all I'm hoping for, and I think that is what the Flames will get out of this. That in itself is an upgrade, and I do think it is enough. I have enough faith that one of Parsons, Gillies, Rittich steps up into the NHL during that time, or maybe even Schneider and MacDonald if they just turn their games around. That is 3 solid as they come bullets and 2 extra BB gun shots that might just hit someone in the eye if they are really, really lucky. That's good for me.
Plus, you really never know who else becomes available during the next 2 seasons. If there is a deal to be made, Treliving isn't gun-shy to do it.
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