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Having "infected" the Oracle, Smith gained her powers. Using her prophetic ability, he foresaw the end of the fight and which version of himself was there. If that is the version that will defeat Neo (so he thought), then it is the only version that need fight at all.
Did Neo, the real world Neo pass away? I understand how he defeats the Smith program but I'm curious whether he (Neo) really dies or not. Is he re-inserted into the machine world for the next program?
r43871