So, Smokey's primary purpose for entering the Vytal Festival is not for the sake of competition. I mean, winning the tournament would be great, but he primarily wants to demonstrate his-- shall we say-- unique skill-set to the world. He's hoping to get a prime opportunity to show the power of the Good News in order to attract Big Game jobs with high price tags. That being said, he'll still be looking to win. He won't be whipping out his big gun unless he's given a very good reason to.
Aurelia, on the other hand, is in it mostly for the sake of competition, pride, and prestige. If she can win, especially starting without her semblance active, it'll be a huge high point of her career. That being said, she has an ulterior motive. If she wins, she hopes that will be enough to convince her foster family to let her see her adopted sister more often.