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I'm frankly a little confused why you would take issue with Smashwords over this, even if they DID require the notice. They are a distribution service, and they have to make money, so, if the product is (basically) free as long as you can find someone who bought it first that will give it to you - you are basically only offering to pay Smashwords for whichever copies people are actually willing to buy, rather than get your book for free.
For their premium services (services that they no doubt have costs associated with providing) it's only common sense that they would want the products they are distributing to make a return - for them, *and* for their partners.
The Smashwords Edition statement has to be exact. "Smashwords Edition published at Smashwords by (username or press)" and on the copyright page.
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