It's a drawback for him for sure but only if there is a certain level of ambiguity concerning who is better. If he comes in and plays well but not noticeably better than Archicald (for example), then yeah he's going down in favor of Archibald in the effort to maintain both assets.
If he comes in and has a noticeable impact above and beyond what others are providing, then he will stay.
Smith was darn good in pre-season. POJ was pretty darn decent as well and he's been decent this season. Smith in WBS and POJ in the NHL is not an indictment on Smith, Sullivan, or POJ. It's simply a roster/asset management decision to keep both players (for now). I would suggest the front office did not feel there was a measurable or material difference in Smith vs POJ.