>1. Using your phone as an actual phone (i.e., an audio only conversation with the thing held to your ear, or with a headset).
There's no indication this bans audio calls, given it specifically calls out smart phones I'd wager that's not their intent.
>2. Using it as a navigational aid. If I'm not too sure where I'm going I'll often use either Google or Apple Maps to set up directions before I start walking. I'll then put the phone in my pocket and just pull it out from time to time to check I'm still heading in the right direction.
So be respectful and step out of the flow of foot traffic to check it? They didn't say you couldn't use your smartphone in public, they said not to do it while you're walking. I'm sure they got sick of idiots either running into other people or walking into traffic with their faces glued to their phones. Can't say I blame them.