Gay certainly went Toine in Toronto. He'd go complete iso eating up the whole shotclock and end up taking a ton of very contested long jumpers. You don't have that much talent to end up being part of trade that has Vasquez and Patterson being the main pieces coming back for you if you didn't have serious problems. He has changed a LOT in Sacramento and has shown passing ability no one in Toronto and even Memphis knew existed which has resulted in much better shot selection. The fact he has (typically) Cousins playing with him also opens up a lot.
This is why I believe Smith can be saved. Gay is a completely different player than he's been throughout his career and is fully maximizing his talent. It came at a very, very low cost. The same would apply to Smith. He would cost us nothing talent wise (McCallum would probably be the best player going out) and he'd all of a sudden be playing with the best talent of his career and a coach who has turned a player whos had character issues (Cousins) and a player whos been consistently labeled a blackhole (Gay) into very good building blocks for the future. I feel as if our coaching staff is very good at leveling out players personalities and bad tendencies.
Now if we can get a great bench player for something similar to Smith's cost, I'd be very happy with that. But I think Smith right now is the best bargain we could get given Malone's ability with player personality. But there is certainly no way we can move forward with this current team and think anything will come of it. We got Cousins, Gay, Collison, and Ben's improvement. Stauskas has been awful and there's nothing else beyond that. For a small market team like us, risks need to be taken to reap benefits (see Gay, Rudy playing with two players with extraordinarily high usage rates).