I agree that the dominant use of the term "Smart Cities" is a capitalist/surveillance economy model.

Aral Balkan sums up the situation:

’Smart City’ is a Silicon Valley brand. It is a vision of the future where our cities are panopticons where our governments and a handful of corporations get smarter about us. Smart Citizen is a rejection of this Silicon Valley imperialism. It is the opposite of a Smart City. A Smart Citizen platform is:

• Funded from the commons for the common good
• Free and open
• Decentralised/federated
• Interoperable (no lock in)

It is a platform that is owned & controlled by the people. It is a platform that enables people to get smarter about themselves.

Source: https://twitter.com/aral