As I understand the reason a lot of SMART engines go pop is due to a problem with the exhaust manifold....ie they get hairline cracks which let in air, which in turn confuses the lambda sensor which then causes the engine to under fuel and then over fuel etc etc etc.......the overfuelling washes the bore clean of oil and the under fuelling causes the engine to run hot and then things start to get ugly (ie sometimes the spark plug tip breaks off and scores the bore) and eventually the engine goes pop if the problem is left for too long.
Because the engine is buried under the back of the car, many owners don't cotton on to the hairline crack in the manifold, let alone bother to check their oil levels.
So I don't think that its a design problem with the engine itself.