It doesn't. It looks like a noob attempt to make chuck norris. And polycount goes crazy, like it did for your worms model (it is still huge), I could've made the model like that with 300 or less triangles. In warcraft III every triangle counts. NEVER EVER USE ANY KING OF SMOOTHING!. Topology is vital to any model, and in wc3 topology is completely screwed when high poly. Also, try placing as many of those high poly units you want and see what you get. Meshsmoothing is not used in any games, it is used for RENDER ONLY. If you want to make model detailed, put your time into it, dont rush + meshsmooth. It looks horrible. Not to people who are clueless about modelling, but to people with knowledge.
So meshsmoothing == nono