I think it is to do with judgement and that is what they mean by you're next, rather than next to die.
I also think that Smokie is somehow controlled by the others but not sure how. I had a look on another site where they have broken the audio down into each channel and made transcripts of what is said.
The first time that smokie was around in the pilot the transcript was:
(Monster at the Beach)
-----
CENTER CHANNEL:
"You aren't joking" (1 sec)
"What a lousy thing..." (2 sec)
"I don't care what we do to them" (5 sec)
"Whatever we do we best do it ('fast' or 'right')" (8 sec)
"We can undo this" (14 sec)
"Bring enough men to do it right" (18 sec)
"How many do you want us to do it with" (20 sec)
"Twenty-seven" or "Tough to say" (21 sec)
"New idea" (sped up; 23 sec)
"Now you're just winging it" (23 sec)
"We don't have time for loose ends" (25 sec)
-----
LEFT & RIGHT CHANNELS:
"You aren't joking" (1 sec)
"What a lousy thing to go through" (3 sec)
"They're ruining the plan" (5 sec)
"Crash victims" (8 sec)
"Maybe they didn't hear me" (8.5 sec)
"What do you want to do" (background; during horn sound; 10 sec)
"To them" (11 sec)
"You know crash victims... can't keep ('our' or 'them') secret" (13 sec)
"I ('wondered' or 'wanted') the same thing" (17 sec)
"Why are you asking what I think?" (20 sec)
"That's not what I was doing" (22 sec)
(Monster at the Cockpit)
-----
CENTER CHANNEL:
"We could've handled it" (3 sec)
"Their now an intruder" (4 sec)
"Tell them that we located it and they will be soon be going" (6 sec)
"What are you going to do" (9 sec)
"Will you get going" (11 sec)
"There's no telling when they'll leave" (13 sec)
"Do you know what to do with them if they don't leave" (14 sec)
"Do you remember what the plan was" (17 sec)
"Look, now they've found another one" (19 sec)
"Okay, stick to the plan" (20 sec)
"Alright, no sign of any problem... it's quiet" (24 sec)
"Stand ready" (27 sec)
"Go for control of the window, we'll cover you" (29 sec)
"Keep them from suspecting anything" (35 sec)
"And don't let anyone else to know we're here" (36 sec)
"They've already seen" (40 sec)
"Don't let them go free" (42 sec)
"Don't matter" (48 sec)
"Did you see the scared look on their faces" (48 sec)
"Okay, follow them" (56 sec)
"Make him run for his life" (61 sec)
"Keep running, keep... damn, he did get far enough" (66 sec)
Kate hides in the tree
"Bet that lightning bolt scared her" (88 sec)
"What we're gonna do is separate you" (91 sec)
"Do you like the way you left him to be eaten" (93 sec)
-----
LEFT & RIGHT CHANNELS:
"Tell me when you're ready" (1 sec)
"We could've handled it" (2 sec)
"They're now an intruder" (3 sec)
"They're not leaving" (4 sec)
"Before you..." (5 sec)
"Try and get to the tower..." (5.5 sec)
"You hearing me at all" (6 sec)
"Interference" (7 sec)
"Hello" (7.5 sec)
"Can you hear" (8 sec)
"There it is" (8.5 sec)
"I didn't hear anything" (very faint; 9 sec)
"Quiet" (10 sec)
"Look they helped their captain" (11 sec)
"Hurry it up" (13 sec)
"Let him see you... then try to grab him" (14 sec)
"Kill all of them" (26 sec)
"I told you the plan" (27 sec)
"Kill the pilot, chase them away" (55 sec)
"They really got after it" (77 sec)
From these, and the other transcripts, it sounds to me like the others watching the losties but if thats the case then I don't know why they needed to send Ethan and Goodwin. Just found it interesting - no transcripts of this epi are on there yet though.