Control + Click on the name of the playlist

Hover over Delete Playlist and then select:

- Delete Playlist Only (it will delete the playlist but it won't delete all the songs from your main library as you might have some of those songs in other playlists)

- Move All Songs to Trash (It will move every song in the playlist to the Trash)

You can retrieve any deleted songs from the Trash smart playlist.

However, you cannot UNDO moving the songs to the Trash, you need to click and drag them back to the main song library or the playlist.