The point is that smugglers should not be visible on the network in the first place. Knowing that your car trunk is automatically scanned when you enter the highway, you wouldn't drive on it either just because it's faster. Smugglers should avoid main traffic. Of course, that would make it take much longer. In return, smuggling should be much more profitable than it is now.
Personally, I would have no problem with smuggling being more profitable than normal trading. In the best case, police factions are more attentive and seek out players, leading to more activity and chases. In the worst case, smugglers make a bunch of money with no consequences, which I would have no problem with at all. I see this as "punishment" for inactive cops. I don't think it's fair that smugglers are not being looked at in this discussion. Why can't we buff smugglers so significantly that it doesn't seem too blatant to punish people based on the network alone?
Currently, both parties are in an improvable state. THE police are not allowed to use their network to the fullest, even if they are given the information they need. Smugglers take a higher risk, but do not get enough money in return.
But I don't believe that in a broken system we should leave things as they are just because by improving one aspect, another aspect would be even more broken. Instead, we should improve both sides. I don't want to sit on Newark and play the game based only on the network, but I also don't want to deliberately look the other way and accept smugglers comfortably delivering their contraband via monitored trade routes.
Ideally, I would be able to punish people via the network, but I wouldn't get the chance because they are sneaky and don't show up at all.