This'll be my last post on this grammar debate, publicly at least. But
since someone decided to attempt to publicly correct me, I figure I should
respond in an equally public manner to correct the correction.
The dictionary that Angus references is not entirely wrong, though his
interpretation of it is.
Funny how the illustrative quotations in the OED definition support
exactly the usage you're speaking against. For example, from 1886:
"Hello," smiled the Dean.
In other words, the definition in question meant exactly what I said it
did: namely, to say with a smile.
It may be bad style -- I do not argue with that. Pretty sure you won't
me doing it. But it is an established usage, with a fair bit of history
to it.
Cheers,
Angus