Meanwhile, if you want to express the idea "a device that uses local sensors + local processing to attempt to optimize for property a human configured it to optimize for", you don't call the device smart — you call it intelligent.
This is different in kind from generic common-language use of the word "smart" by consumers as an adjective attached to product categories ("smart fridge", "smart home", etc.), which is what I was referring to.
Even in the 80s, the X10 "smart home" automation technology was all about networking the devices in your home together to put them under control of a central hub; not about any active "intelligence" per se.
A thermostat has always been an example of "device intelligence", but has never been called "smart" technology... until recently, as there are now "smart" thermostats (like Nest.) But these are another Internet-of-Shit product, and that — not any clever behavior — is what makes it a "smart" device.