Most of the Losties lives in the flash sideways are better than they were. So maybe evil went down with the Island?
Evil in charge wouldn't mean their lives wouldn't be better. Satan only temps you by giving you strife when he needs you to sway from God/good. When evil has you there is no need to harass you.
Of course I'm just throwing it out there as I have no idea what else the sunken Island could mean.
But that would mean Smokey knew Locke would be killed and could take his form (yeah I don't know if that's a requirement but seems to be) when everyone came back. I think perhaps Jacob (probably be a white smokey) is Christian and wanted Locke off so MIB couldn't use him. Unfortunetly the Losties brought his body back.Christian is smokey.
Christian has been telling Jack & Locke things that will either send them down the wrong path or get them off the Island. Remember, Christian tells Locke to turn the wheel. Turning the wheel throws you off the Island and moves it to a new place so you can't find it again. Christian/Smokey wanted Locke gone.
