Works on my Sony Eericson Xperia by going onto options, but the key board stays on "caps" after starting a sentence. I think that there is a small glitch,, there were 6 thumbs on this post, backspaced to remove 3.
On my laptop and PC I can 'delete' a smiley by going to the space just before it and pressing delete, or just past it and then backspacing, but I can't actually click on the smiley itself and then delete it as I could with the old software, it's not the same but it's not a major issue though is it!
I use Android on a Nexus 7 and have seen this issue. I am not sure it is a problem having too many smilies but I find the easiest way to delete them is to switch to the BB code mode ( thing with a spanner) and delete the code itself. Not perfect, but it works.