The Lawnmower man could rewrite reality outside of computers. He became the internet and every computer attached to it. He was the operating system of reality. Surely Smith was not that...
In his own crappy movie. Not like that'd happen in the Matrix. Smith spread all over the Matrix and had it not been for Neo would have taken over all the machines as well.
We have to assume that the real world operating system would be the same on all Earths otherwise the thread is pointless. The Lawnmower man could simply rewrite reality itself.
The Lawnmower subverts reality so Smith's code is a digit short and smith becomes a glitch. He then has every gate open to "Y" in the battery fields and all the humans are released.
You have to debate based on the powers and the plot, the plot was that inside the network, he was god and outside the network he was rewriting reality.
"By the year 2001, there won't be a person on this planet who isn't hooked into it, and hooked into me."
He was the operating system
"my birth cry will be the sound of every phone on this planet ringing in unison."
He had gained understanding and insight into the nature of reality itself.
We are going to have to disagree as I would say disassembling someone on an atomic level is greater than anything done out of the matrix in the real world and getting every phone on Earth to ring on entry to the net is greater than any single event within the matrix. Jobe had become a God in hyperbole and feats.
Neo jumped into Smith. (allowing the adaption) Then blew him up. The LawnmowerMan won't resort to such tactics.
It's arguable how efficient the LMM will be in the Matrix.
He doesn't have a body anymore so he can't be defeated via harming the host body.
He is a man who obtained matter manipulation like abilities and learnt how to transfer himself into data.
Will the LMM be a god in the Matrix? bending the data and programs to his every whim.
Or will he be limited due to limitations of the Matrix itself?
He is no doubt smarter and more powerful than Neo.
LMM doesn't need to abide the Matrix's rules and limitations.
LMM displayed crazy feats in the physical realm and the data realm.
If Smith as a anti-virus program who was forced to live amongst the humans can evolve into a supervirus because he absorbed some of Neos data.
What would a human who through science, achieved complete use of his brain enough to manipulate matter and become digital data and create his own reality do?
The rules of the Matrix have been bent by simple peoples. Enough for the machines to perceive them as threats. For example the runner in the Animatrix who broke the world record in running....he broke the code.
A being like the LMM would crap all over that. And the machines can't stop him because he has no host body to shut down.