the oracle says to him that he has "the sight, now"
meaning that he sees the future, but he can't see her live or die b/c he can't see past the decisions he doesn't understand. perhaps the arcitect gave him the sight when he died, or smith's power was transferred to him giving him more power in the matrix to "see"
Stovenutts> You may as well ask how the Oracle is capable of foreseeing what will take place in the future? How did she know that Morpheus would find the One? That Trinity would fall in love with the One, and that Neo had to die before he chose to become the One? Or is she simply a master manipulator?
A program like, say, Enter the Matrix, has preset things, that will be executed at certain points. That’s not such a big deal, heck it was programmed, and all I do, is push some buttons and move my character around on the screen. But I could in principle, open the program and read what would happen if I did THIS or THAT or something ELSE. I would then be able to predict, that if I take Niobe down THAT path, there will be three Smiths waiting.
Now, the Matrix is nothing but a program. An elaborate and advanced program, but it is still a program. Note, that the Oracle cannot for see what takes place OUTSIDE the Matrix. Now, she’s a special program that has investigated the human psyche. So you have an advanced form of AI, that is not only sentient, it also understand, to a degree, the odd human behavior, and she can profile each of the rebels, that she meets.
It is the same thing with Neo. Since the Matrix is STILL only a program, what will be executed later on is just part of a program.
What you should ask, is if the Oracle takes free will and choice away from the rebels.