Agreed. Its not as smooth as smoothing outside of game mode, but unlike the standard smoothing it generally gives a clean image with close to no artefacts. Only some occasional situations it can give odd results.
Overall though, I would prefer the less fluid motion with minimal artefacts, but if future updates improve it further I won't complain.
Have been playing some games in quality mode for better visuals while not taking as big of a hit on smoothness, and some older PS3 games get a new smoother feel like motorstorm 
Playing some older PS1 games is very effective, Ridge Racer 4 is feeling pretty slick 
