Here is an update.
I submitted a ticket to Appl's developer bug report a month ago, and yesterday I got this encouraging response that shows Apple is trying to fix this.
"
Engineering has provided the following information:
We believe this issue has been resolved through changes to our production servers.
Please let us know if that has resolved the issue for you.
Unfortunately for me, it not only is not fixed, but matters are worse because I can no longer see any playlists on my IOS devices.
Neither of my IOS devices (iPhone 4S and iPad 2) look any different in terms of the order of tracks in synced smartlists created in iTunes -- they are still completely random.
I tried going into settings/music on my iPad and toggling iTunes match off, then on again. I got the warning that all my tracks would be replaced and I said OK. Then the playlists all disappeared and most of the songs that were not already on the iPad either did not show up, and/or the album art was lost.
I then tried re-opening my "master" iTunes on my iMac and it said that I needed to log out of iTunes and then log back in. I did that, and after about an hour, it said that iCloud was now up to date.
I then repeated the process of toggling iTunes Match on and off on the IOS devices. I also rebooted them. I left the iPad running overnight and in the morning, still nothing had changed.
So now I not only don't have the order fixed in smartlists on IOS, but all playlists (including the "dumb" playlists that were working before) no longer appear on IOS.
The Playlists are still performing properly in iTunes -- both on my "master" iMac that is serving as an iTunes Server for my house, and on my MacPro which has pulled everything down from iCloud/iTunes match.
When I toggle the setting "Show all music" off, the playlists show up again on the iPad, but not the album art or the tracks that are in the Cloud. The when I toggle it back on, the playlists are still there, as well as all the tracks on iCloud, but the jumbled smartlist order is still jumbled.