Frankly even with smoothing that feels like it's just way too many vertices. I am of the general opinion that any sort of curve/hole in Blockland shouldn't exceed 8, maybe 10 sides, and that level of circle seems to me like it'd be really out of place.
And that's not just necessarily a matter of personal preference or art style, but also functionality. That level of curving is for a grip designed to accomodate a human hand's palm comfortable. Blockhead's have a flat surface for a palm and they would look very silly holding that, not to mention how uncomfortable they'd be.
