Technically, I think it would be accurate to say that these characters, when all constraints on their powers are lifted and are allowed to fight freely without being unfair to the other roleplayers, are godmodding. I say that simply because their power is on an entirely different level, one that, compared to normal roleplaying characters, would seem invincible. I say "lift godmodding" because I want these characters to be able to go all out, free of any limitation in "fairness" due to the differences in these character's powers. Unless you think I'm referencing to powerplaying, in which I am not.
Also, it's a fair bit premature to be saying Reforge, regardless of how strong he may be, can beat the Smiling Man, especially since you don't know the extent of his power. Besides, how do you know that the Smiling Man won't figure out this weakness and use it against him, eh?
And, I suppose, it wouldn't be completely fair to claim the Smiling Man truly unbeatable, as, in his story's canon, there is one that can genuinely defeat him, though due to special reasons. And most of the fights he is "beaten" in, is mainly due to him getting bored and allowing the other person to win.