Hi,
I've encountered the same problem using smoothing tools in version ArcGIS 10.2.1 and also in version 10.1 .
More specifically:
Smoothing 3D line by using PAEK algorithm does not retain Z values.
Smoothing 3D line by using Bezier curves, retains Z values (similar function in Editor toolbar gives an option of smoothing tolerance).
Is there not an option of interpolating Z values in PAEK algorithm or it is an error?
Any tips?
Best Regards,
Konstantinos