Get rid of it. The text is ugly in an image-grid where its aligned like that. If you can't make four non-repeating random smilies appear, remove the top row altogether. It's just.. ugly. And useless.

On my screen, the text looks like it fits perfectly its cadre.
But I agree that the row is useless. ;o

... do you really want people to use a smiley more often because it's the smiley of the day? Push us to spam! >:O

The original idea was to just have 1 box among all the other smilies that contains a custom smiley. No text. Randomization so that there's no complaints about preference. I guess I am to blame for the slogan "smiley of the day" because I suggested to not randomize it on refresh but every few hours or every day "kinda like a smiley of the day". Never intended the label appear amongst the smilies though.
I hated the full row of smilies too, especially when there's only like 8 total.

I don't really see a problem with the text; is it rendering wrong in Chrome?

I do think the first row is useless, though. The custom smileys have little use aside from being used to refer to the particular member, and if I remember correctly, the current first row overwrote the original first row, which had the contents

:x

I would like those smileys back in the panel, even if I never actually click on them.

Looks fine on my Chrome.

The only issue I have with a "Smilie of the day" concept is that it implies we're okay with people just arbitrarily adding these smilies to posts. Theoretically something like (the "Smilie of the day" for me, right now) can work for different kinds of posts, but on the other hand or really doesn't. I've already seen a few posts now that just have 4 or 5 of these custom smilies arbitrarily added for no reason, but I think the only reason they were added is because they showed up on the left with normal smilies. If we keep the custom smilies display on the left in some fashion, we need to make it clear that adding them to a post without purpose is in fact spam and will be removed.

The four normal smileys that were removed should be re-added. The "Smiley of the day" link should go below the other emoticons and above the "View All / Custom" bit. It should either be reverted to four random non-repeating smileys, or set to exclude emoticons that don't actually express emotions and include properly-sized-or-smaller emoticons that do express emotions and aren't visible in the grid.

It may also help to simply change it from "Smiley of the day", but I'm not sure what a suitable replacement would be. "Random smiley" would work, but could be misinterpreted to refer to the smiley itself. (It could be taken to mean, "include this smiley and it will become a random smiley when you post.")