Now how was Smith destroyed?
He could only be destroyed if Neo was too, because Neo is not the One. Both Neo and Smith together are the One.
The Prophecy from the Oracle was never a lie. It was the truth! But only when you consider Neo and Smith together to be the One. A few quotes from the Prophecy (from Morpheus and the Oracle):
One objection I have to this theory comes from the fact that the prophecy came true whether we accept this theory or not (see Oracle: True Prophecy), while this theory seems to assume that the prophecy was a lie unless this theory is taken to be true.
An even bigger objection I have comes from the fact that the Oracle prophesizes the return of the One. That would mean that Neo's predecessor combined with another virus to form the previous "real One". But having previous Smith viruses presents a contradiction (see Debunked: Previous Smith Viruses).
Whether this theory is true or false, I feel this theory is so fascinating that it merits its own page. It is at least worthy of consideration as a second symbolic layer on top of the actual plot.
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