My wife and I just visited the smokey mountains for the first time last summer on a long weekend trip. It really was one of the most beautiful places I've ever been. We didn't camp or spend a lot of time in the NP, but the mountain vistas while driving through the park and from the observation areas were breathtaking. I would love to go back and do some hiking.
We actually stayed near Ashville NC, which was an extremely cool, small city. There was a ton of stuff to do there, and still close to the mountains. When researching, I also stumbled upon a town in Georgie called Hellen, which is like a Swiss alpine village.
http://www.helengeorgia.com/ I had wanted to find a place that was central between Ashville, Hellen, and Gatlinburg (before I knew how trashy it was). We ended up just staying close to Ashville and one day/night in Gatlinburg because it was just a long weekend and didn't want to use up time driving back and forth. We never did make it to Hellen...
Pigeon Forge TN, is close to Gatlinburg and has the Dollywood amusement park, which would be fun for kids.
The one additional thing to consider about Gatlinburg area is the huge forest fire that they had.