congratulations on your exchange. We own in Tamaracks and really love the location - easy walk to the Fun Zone for the kids! And the North Hill pool is great for little ones.
You don't need the Smuggs Pass for the north hill Pool - your room key card gets you in to the building.
The Smuggs Pass is optional, but it is supposed to cover all the 'free' entertainment and activities in the resort (fun zone, village swim pool, campfire, tubing, indoor & outdoor evening events etc) though i've only ever seen them checking passes at the Fun Zone.
The cost of the Smuggs Pas per person is very low if there are quite a few of you in the unit. And you should save money with the discounts off lift passes, lessons, ski rentals, kids camps, treasures day care and in the shop even if you don't do many days skiing.
I think you buy the pass and get your wristbands at check in. I guess you could manage without it, but i wouldn't want to risk not being able to get access to an activitty with the kids. The wristbands were new last year (previously it was marked on your lift pass) and even owners had to have wristbands and we were checked, even though many of the staff know us.
(We didn't wear the bands on wrists though - too uncomfortable with jackets and gloves, so I kept mine in my purse with my key card, and the kids looped thiers onto their jackets with thier lift passes.)