The team seems still interested in Lynch but the next two preseason games will certainly make or break being kept as the backup, though the PS could still be a possibility. It won't help him that he's being held out b/c of that concussion. That was a dangerous and dirty hit.
To me Smith has shown me nothing however, he may show better in practice which I don't watch. I doubt he is kept, at least I hope not unless he actually shows something in next two games which is doubtful. Chad Kelly or another could be a direction the team could take after all they traded late for Brett Hundley last year.