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Users have been using Smart Object layer for Logo and Watermarks for decades.
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Only Vector Smart Object AI file types are scaled via Vector Graphics. Text in RAW files objects is Camera sensor Pixels not a text layers. Text is Pixel Image Data in Photoshop Objects. Text is not scaled via text layer font size being changed. The smart object is the PSB composite rendered Pixels. Photoshop objects are scale via Interpolation this includes text in the PSB. You seem to need to understand better how Photoshop Smart Object Layer Scaling work. Or that Place will scale Smart object based on Print PPI resolutions. Or that there are different object type that some object types are Photoshop objects like a PSB file or other Photoshop supported image file type while other are are not Photoshop types like AI vector file types and Other are ACR Camera RAW image file. You do not have to clarify that a Smart Object Layer is a single layer. Please comment and suggest a better alternative answer. The margins are consistent and the text is always centered in both dimensions. But at least it maintains text editability, albeit in the Smart Object source. Hold down the Shift key and resize the Smart Object to desired size. Click on one of the Corner Anchor Points.Right-click on the Layer Name and select Convert to Smart Object.(The adjustment may be limited.) You may need to Reveal All to see the entire Text Box afterwards. Return to the text and ajust the font size relative to the desired margin.Spread: Adjust the slider in conjunction with the Size slider until the Outer Glow becomes a solid rectangle. Set the followings: Blend Mode: Normal.With the Text Box layer selected, select the Outer Glow from the fx Dropdown menu.Click and drag in the Canvas to create a Text Box.Create a Text Box layer by selecting the Horizontal Type Tool.