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And we pay Smashwords how much? Last time I looked, it was a free service. If you read and follow the Smashwords formatting guidelines, you will get premium distribution. I say that as someone who has had revisions rejected and knows how frustrating that can be. One nice benefit of all that work is you will be nicely set up to upload your work to Amazon's Kindle Distribution Program, which if my experience is any guide, is where the lion's share of your books will be purchased.
Bottom Line: Smashwords costs nothing, it distributes in all formats (try doing it yourself), and it gets you in better shape to upload to Amazon. That said, there are a couple of things I would tweak, but overall I can't complain.
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