For a lot of teams, buying out Smith would be an easy decision. Not especially palatable, but easy.
The Rangers, though, are not most teams. In February they announced a rebuild, and somewhere near the top of the list of rules for rebuilding is not to do things that help you now at the expense of the future.
A buyout, which pushes dollars into the future, is generally a bad idea for such a club unless it is completely unavoidable.
It’s my view that New York doesn’t risk much by waiting a year and seeing if they can get something out of Smith next season. If they have to buy him out afterward, the cap penalty will be shorter and for less money.