What I’m actually referring to here is the change proposed in ZIP 230: Version 6 Transaction Format (which is not the greatest place for it; we should probably add a 2000-series ZIP for the modification to ZIP 317). It’s my opinion that essentially all of the issuance fee should be burned; the fee for the Orchard actions in the transaction that provide the funds to pay for the issuance fees will still pay normal transfer fees. I also posted about this topic here: ZSA - Update on Release - #6 by nuttycom
Related to this specifically, note that ZIP 234 doesn’t activate for likely more than a year after NU7 activation. This gives ample time for updates to be rolled out to miners after the NU7 release before the smoothing actually becomes an active feature.