For those that don't know what powerline is, there's a quick writeup here:
http://computer.howstuffworks.com/power-network.htm
It's great technology, turning your home AC wiring into a network. Concerns being leakage across other phases and traffic being picked up by your neighbors. Yes it is possible for your neighbor to tap into your network if you're using powerline. I've yet to try it where I live, but curiosity will prevail some night
I can't find much information on these new smart meters - I know they use a powerline system but one can only assume they can pick up and sniff out data from a basic powerline networking system in a persons home or business.
I've used powerline, but never really felt great about it just for those reasons...