Smart Contracts haven't ever solved the 'Oracle' problem. Let's say you and a buddy make a bet on the final NCAA championship game. You could try and put this into a Smart Contract, but what if your buddy says he won when he really lost? Who do you trust to give you this information? It's not like it's on the blockchain anywhere. Even excluding malicious intent, people are going to make mistakes.

Also if you look at the Lightning Network / payment channels stuff, there's still a lot of built in trust in the system.