In 1986, Phil Phillips published a book called Turmoil in the Toybox
Phil Phillips is the author of Turmoil in the Toybox (1986), Halloween and Satanism (1987), Saturday Morning Mind Control (1991), and Dinosaurs: The Bible, Barney, and Beyond (1994), among others. Turmoil in the Toybox is about how the Smurfs, Care Bears, My Little Pony, He-Man, Mighty Mouse, Cabbage Patch Kids, and Rainbow Bright are all wicked devil toys straight from the pits of Hell itself leading our precious children into ruin. The other three book titles speak for themselves. Halloween and Satanism includes some, perhaps unwitting, but still overt anti-Semitism on display in the author's choice of images and captions.
Practically his entire repertoire of works fall under the "80s/early 90s Christian paranoia/sensationalism" market. They're also unmentionably bad.[citation NOT needed] His books were sold in every Christian bookstore, on prominent display right next to those of Texe Marrs.
You can view 10 youtube episodes of the book here:
https://www.youtube.com/watch?v=3jrMoVWl5KA
In the following youtube video, "Deception of a Generation (demonic toys)", Phillips discusses the Smurfs at 1:12:30. The Smurfs are, according to Phillips, representative of dead creatures (blue with black lips), homosexual (because the only female is Smurfette who magically changes to male in one episode) and Papa Smurf casts spells:
https://www.youtube.com/watch?v=Hnjdq32u-MU
I don't think that the Smurf legend originated with the JWs - they just picked up on Phil Phillip's insanity and ran with it. The 80s were rife with Christian paranoia - most of the occult legends originated with right wing born-agains in the States