SMGs: Lethality vs Range

[Mowgli]

I think you are correct and I also don't see any problem here. SMGs are good point blank weapons (fire at adjacent hexes, lethality *2) and good assault weapons (find the weapons' assault values under F3/Weapon Data, scroll down).

Holding the fire at longer ranges is definitively a good idea as it allows your SMG troops to stay concealed and thus have a smaller chance (50%) of getting hit by fire directed at their hex.