The idea that we can't have any sense of historical sympathy when judging those from older generations is abhorrent to me, and frankly I think it betrays a kind of societal hubris. What's the purpose of it anyway, since it's so lazy and ahistorical? I guess it cleanly breaks off from and shuns those elements of our ideological lineage that we are uncomfortable with, as opposed to recognizing there is a lot of continuity. It is an opportunity to feel evolved while simultaneously hampering our evolution.
So yea, what Smith said was abhorrent, but as Mark points out, not to excuse it, but to understand it, it's useful to appreciate context. That said, his beliefs and remarks are particularly shamelessly racist, even for his time.
As to why someone should bring it up now in such an unhelpful and unconsidered way, I'm a bit lost. Tommy Smith will be dead soon, like so many of that generation, including many heros, many brilliant liverpool footballers who built this club, many men great and small, and by themn's logic I'd wager most of them will deserve to be wished dead, such were the times.