Hi Rick,
I am sure you have endeavoured to explore all possible options in your search.
I want to make sure I am understanding where you now stand in this quest.
Is it correct you believe that the Monaro Pioneers site has made an error in their assertion that William Henry SMITH (married 1887), also had the given name REYNOLDS? This was mentioned by Judith above.
Is it correct you have full BMD information for the man William Henry Reynold SMITH?
I have not been able to locate anything conclusive about the man in Victoria, but admittedly, my searching has not been thorough

In your opinion is it just an interesting coincidence that the birth time of your chap and that of William Henry Reynold SMITH are very similar and both born in the same region?
Just worth noting too......
The son informing on the death certificate of your William Henry SMITH may have had no real information about the parents of his father.
Daylesford and Castlemaine are about 35 kilometers apart and it is common to find people at that time held incorrect notions of their exact birth place.
Anyhow, it is certainly frustrating for you to be brought to a halt in your family history by this hurdle
Sue