I've cut and pasted vector art from Illustrator to PhotoShop and chose "smart object" when I pasted it.
Is there a way to convert the smart object to a shape layer now so I can edit the very simple art directly in PhotoShop?
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Now you can do it with better updates of the Photoshop CC (2017), but in order to convert from layers to shapes, you need to use just one color for the vector you're trying to export from illustrator, then copy and paste as a Shape Layer in Photoshop, otherwise it will not allow you to convert the vector into Shape layer.
As you can see in the image I just upload. There is the option to convert to shape layer from Illustrator to Photoshop, I'm using one of the last versions of Photoshop CC 2017. Hope this help a lot of people. God bless you all.