I would have said use the whole pound.
Briess smoked malt. That is the Cherrywood smoked malt? I used 3 lbs of fresh malt in a 7 gallon batch, and it was decent, definatly smokey, but not over-powering.
If you had said it was the peat smoked malt, I would have said use only 4 ozs. I have found 6 ozs of peat smoked malt in a 7 gallon batch gives a similar result to 3 lbs of the cherrywood smoked malt.