The fact that Alex Smith has not already been signed to an extension can only mean that the Chiefs are keeping their options open heading into the draft. The Chiefs brought in Tyler Bray (arguably the QB with the most upside from the 2013 draft class) as an UDFA who has already shown some nice promise. The 2014 draft looks loaded with QB talent. If there is a QB the Chiefs think could be their franchise future there at #23, don't be shocked to see them pull the trigger. They replaced the second most important position on the team last season with their first pick... why wouldn't they do the same thing with their first pick this season?
The whole decision of whether or not to draft a QB will come down to what they truly think of Tyler Bray... NOT Alex Smith. I think Smith has priced himself out of KC. Even though the Chiefs are coming off a playoff season, it feels a lot more like the playoff season Edwards led Vermeil's Chiefs to rather than a sign of things to come. The Chiefs have maxed out their cap space and have gotten worse in doing so. This team will be facing some tough decisions in the next few seasons that will probably see Eric Berry, Tamba Hali, Derrick Johnson, Jamaal Charles, Dwayne Bowe, and Brandon Flowers among others leave the team. If those guys leave, it won't be so they can afford a guy like Alex Smith.
Also consider that the Chiefs will be stock-piling picks for the 2015 draft. They will start with 7 and will probably get at least another 3 as compensatory picks from losing Albert, McCluster, a pair of starting OGs, and Tyson Jackson. Going with a 2nd or 3rd year QB in the form of this year's QB taken in the draft or Bray from last year will allow the Chiefs to get ANOTHER compensatory pick in 2016 by letting Smith walk. Smith won't be the only high-profile player to leave, either. I would expect some big names to either get traded this season with 2 seasons left before free agency, or next year when they still have 1 season of team control left.
You may disagree with me and not believe that this team is about to go through a major overhaul, but do you really think John Dorsey and Andy Reid are going to let their their collective futures in KC be decided by and aging roster that they didn't select? Doubtful. If the front office thinks they can get/or have their QBOTF in this draft or the last, they won't sign Alex Smith long term. In fact, I don't see a single scenario that has the Chiefs committing long-term money (especially $15m/yr) to Alex Smith. Andy Reid and John Dorsey want a guy they can develop over an extended period of time. (see Aaron Rodgers)
I see a 3 year plan of something like the following:
Trade Eric Berry for draft picks in 2015/16
Let Alex Smith walk for picks
Trade Hali for picks in '16
Let Charles walk after '16
Trade DJ for picks in '16
Cut/trade Sean Smith after '14
Sign Justin Houston long-term
Sign Dontari Poe long-term
Sign Bray (or '14 rookie) long-term
10+ picks in 2015
10+ picks in 2016
All this among other moves, of course... but I think you are going to see a drastically different team heading into the 2016 team than many of us want to see. I will be absolutely shocked and dismayed if Alex Smith is the starting QB for the Kansas City Chiefs heading into the 2016 season.