Post by Trevor SmithonDid the Oracle somehow infect Smith when he morphed/overwrote her
earlier in the movie?
THEORY 1
As the experience with the Oracle's shell proved, any time Smith takes over
a shell (body) in the Matrix, he has complete access to their minds, or at
least the portion of their minds that are digitally active within the
Matrix. This is perhaps doubly so for machine programs, who are entirely
digital.
THEORY 2
The Oracle is a much more powerful program than any ordinary program or
human mind running in the Matrix, and therefore she was able to overpower
the Smith shell in order to get a few words out here and there.
Smith only hacked through the shell of each being he took over. This is made
obvious when we see Sati wake up on the side of the street at the end of the
movie. He didn't have the power to actually replicate himself in the empty
space of the Matrix, or else he would have.
My question, however, is: Why weren't there thousands of confused humans
lining the streets where all the fallen Smith clones had been left?
My answer, though only speculation, is: the system relocated each human to a
more appropriate location, or perhaps simply put them to sleep for a few
minutes while the Matrix was reloaded. Since this is never addressed,
though, there's no way to know for sure.