Absolutely, ethereum can play the role of a new litecoin. Actually, that is what it currently mainly is: just another better's token on exchanges. The "smart contract fuel" thing seems to be a far souvenir of the old days - this was what I was pointing at tongue in cheek.
Ethereum is then as much "smart contract gas" as bitcoin is "currency": not. Essentially betting tokens on exchanges, and the "crypto tech" behind it doesn't matter much. In fact, ethereum is somewhat better as currency than bitcoin, because it is faster. But Litecoin is so too.
The Ethereum is different from the litecoin. It is under constant development. Some big companies are using the Ethereum.