I am "Stealthback," meaning I have the catless DP/RP but am running the stock CBE.
"Smoke" issue is non-sense to me. Check out my other posts on the subject.
I've owned a number of high output four cylinder turbos, three SAAB's two Volvos before this MS3. Every time I went catless big DP/RP and upgraded the ECU to run premium fuel and higher boost like ours (14-15-16 psi) there has been a certain amount of "smoke" from incompletely burned crankcase fumes getting recirculated into the intake through the PCV valve. My MS3 "smokes" no more than any of them.
All of the other cars had Garrett T4 or T04 turbos, so I don't think this has anything to do with our K04 turbo or the alleged seal problems. I just think it comes with turbocharged engines that are running high boost and high compression controlled by an ECU and which have the high pressure crankcase fumes recirculated back into the intake.
An oil catch can will help, but may not totally resolve this so-called "issue."
None of the turbos failed on any of the cars, although one did eventually have a shaft journal bearing gradual failure north of 100,000 miles, which is normal for that mileage. When the bearing journal starts failing you can hear it.
This is a long answer for, yes, there will be a bit of "smoke" or more "smoke" if you are catless. It comes with the territory. Check out the user groups for EVO, STI, SAAB, Volvo, turbo BMW, Audi, or any other turbo enthusiast forum. Everybody is bitching over what I think is a non-issue.
I think most of the people concerned about this issue have never before owned a turbo car running boost at 15 psi or higher on a high compression ratio engine. Otherwise they would have experienced this "issue" before and know it comes with the territory.