I sometimes use *smiles* after I say something but I never put it inside quotes. It makes perfect sense because you do not always smile in real life before you finish your sentence. Sometimes you start serious but smile in the middle or the end.
Actually, I have personally seen Parallo use -smiles- in the middle or end of a sentence, which is the same thing as *smiles*, except with "-" around it. I was at Jayose library with a test character a while ago, when some Klyros said "Hello" to Parallo in passing and turned away towards the books. His response was "Hello. -smiles- Can I help you?" or something very similar. Actually, I thought that it was kind of lame because when someone says hello to you in real life in a library and goes about their business, it doesn't mean they want any help from you, especially when you are not a librarian. Klyros' responses was "No, thanks."
Anyway, this wasn't an attack, especially when Parallo didn't really do anything horribly wrong and was probably trying to be nice. It's just an observation.
*smiles*