I get and agree with your basic point, but I would stay away from "smart and dumb" because, like "good and evil" or "right and wrong", they are value judgments, and value judgements, as you've noticed, tend to limit rather than increase choice. The more emotionally charged the words, the more limit on choice. And one way to really charge up words emotionally is to use them in relation to the person, rather than the behavior. (As an example, "You're dumb." has a lot more emotional charge than "That (behavior) was dumb.")
And when I talk about limited choice, I'm talking about the person who is doing the judging, far more than the entity being judged.
One limits one's own choices by judging and labeling, and makes one's self less supple in being present in the moment.
Instead, I like to use "works well or doesn't work so well." It just seems to make it easier (it works well!) for getting the results I want and for assisting others in getting the results they want.
Sometimes what looks like evil is really a person who has a positive intention (which is everyone) that they're just not very skilled at fulfilling, and they use ineffective, even desperate thoughts, actions, and habits to try to reach. Everyone is doing the best they can with the resources they have available to them.