The bottom line is that some email sending apps/devices send the subject using UTF-8 encoding and some don't.
For the ones that do send email to me in UTF-8 format, if I setup a notification in smartermail, I get this in my notifications:
[subject=] ?utf-8?B?MDAwREM1RDFDNkQ4KERhZEJhc2VtZW
So, all I am asking is for smartermail to properly decode the subject of an email *before* sending the text of the subject out in a notification.