From the article Montana so nicely provided:
"So, our recommendation still holds. If you want zoom power, only
optical zoom matters! Smart Zoom is the better form of DIGITAL
zoom, but what you GAIN in SIMULATED ZOOM power (again, you're just
cropping), you LOSE in IMAGE SIZE. There's no free lunch.
Again, DON'T BUY a digital camera based on digital (traditional or
SMART) zoom. Always compare optical zoom with optical zoom. If you
are comparing 2 digital cameras with the same optical zoom, but one
has smart digital zoom and the other has traditional digital zoom,
then the smart zoom has a slight advantage. But personally, I
wouldn't even look at that because there are a lot more important
features to differentiate the cameras."
And by the way, I see absolutely NOTHING in this article about
better focusing ability with "smart zoom". Your focusing is no
better than with regular digital zoom, and that's no better than
with your lesser optical, because your camera is still only seeing
the subject at the 12x point (not at the imaginary 16x point of
digital smart zoom). The camera focuses first and captures the
image and then the image is cropped to the smaller size - no where
in there are you focusing at a closer point than the optical lens
can get to.