Does anyone know if smartobjects are only for print? I in example shrunk one down, and where a non smart object would be aliased, the smart object was not. I attempted to flatten the image to see if possible it would then apply a size alias to the shrunk smartobject, but no change. Which leads me to believe exporting in different raster formats (Example:DDS) it will not alias these if shrunk.
Am I missing something? Or does the smartobject only work for print?
This is on CS2.
Heres a pic.

(Yes, know pic is in CMYK was for print thing, though hope shows what Im referencing).