First of all I need to tell you that you have an awesome support dep., not to mention the product itself.
Secondly, I'm facing some issues with the SMIL feature: we have a client that wants several streams under the same m3u8 playlist file (probably you know about the Apple's HTTP Streaming requests) and trust me I followed everything related to SMIL in Wowza's Docs and Apple ones and I get an error like unable to download playlist in Media Stream Validator (Apple's Link Validator)
I will attch here some links with the setup - please let me know if I did something stupid.
Your .smil is setup as a single video with 3 multi-bitrate renditions. It looks like you're pushing 2 streams via FMLE and 1 stream from another source with another copy of FMLE. This will not work as the keyframes will not be aligned.
There is some confusion here about the desired goal. Can you elaborate? Are you trying to switch between 2 streams based on bitrate? Or maybe you're trying to set up a sequential playlist that loops through different streams?