Sounds like you lost your serpentine belt...the loss of power steering would be a tipoff. Or, I suppose, the power steering pump could have seized. Either is not a big deal. You should get a second opinion from another shop.
The ONLY thing the dealer said so far is that they thought the AC pulley froze/locked. But they suspected there were several/many(?) other side effects. OK, so maybe that burned up the main belt but not for all the smoke?????