I agree with you about the confusion.

The idea of HMTs (SMTs) appeals simply because it is instantly as decentralized as the HIVE token in terms of the number of nodes supporting it.

If we go with a second layer smart contract solution, the issue of centralization comes in.

Here is where I think more clarification is required as to how that will look. From past posts, I understood it to be some type of multi-server system.

Understanding how the proposed second layer smart contract solution would look is necessary I think. With that, users will be better informed.