The fundamental flaw in demanding Smith be FIRED, as the title says, is in believing that what he said is correct. The best way to deal with Shepard is to dissect what he said and show openly how wrong he is about almost everything he put forth.
Furthermore, even if you believe what he said, which I don't, all he did was to shift the responsibility from Hillary to Obama. He didn't argue about whether the deal was right or wrong, or legal or illegal, all he did was to attempt, unconvincingly in my opinion, to take the blame off of Hillary.
Nothing he said means that it should not be investigated. All he did was say that Obama bears the responsibility for it, not Hillary.