Boon of Magic School Mastery - Smite?

I was just listening to a youtuber describe the new boon coming in Arcana Unleashed, which apparently comes from preview copies already distributed. For reference, you pick a school of magic and you get:

1. A level 1 spell from that school that you can always cast for free without using a spell slot.
2. A level 7 or lower spell from that same school that you can cast for free once per day.

So over at Wargamer, they immediately pointed to Shield as being an obvious choice for probably any class. For only the cost of your reaction, you always have +5 armor basically.

But it got me thinking about Paladin. Of course Shield would be useful for Paladins too. But what about Divine Smite? It's a level 1 Evocation spell so I don't see why it wouldn't count. Would this mean that a Paladin can effectively smite every single round of combat without any regard for his spell slot economy? And that's putting aside for a second the once a day use of a huge spell like Fire Storm or whatever level 7 spell you choose. I'm also wondering if by way of Divine Smite no longer using a spell slot, you open up some multiclass options that would allow you to cast a spell as one of your 2 attacks and then still smite using your bonus action on the second attack? Bladesinger comes to mind as a way to get to this, and it would complement the Wizard's usually bland Bonus Action options.

Part of my thinking on this is that Shield is probably a great default choice for this, but there's only 1 level 7 Abjuration spell and it sucks relative to other options. Of course you could go to lower slot options and open up a lot of choices like Contingency to Death Ward yourself or something I guess. But it kind of sucks to not use the spell level option to its fullest extent with some of the awesome spells available at level 7 like in the Evocation school. Of course the major limitation with the Paladin is that you would only get to use that 1 time per day because you have no level 7 slots. Unless of course, you went the Wizard multiclass route as mentioned before....