Yeah Andy is right on. Also the flash point, the temp at which the oil can burst into flames, is usually not that far away from the smoke point. That is why olive oil is not generally used for deep frying.
As far as cooking with it, sure. There is a difference between sauteing, or what many of us just call frying or pan frying, and deep frying. When you deep fry the idea is to keep the temp high. You add foods at a rate that will not drop the temp too much. You want the oil at a high temperature. And the food volume is usually less than the oil
With just good old regular pan frying the oil is generally less than the amount of oil in the pan. Putting in the food, no matter what the initial temp, lowers the food and the cooking process keeps the temp below the smoking point.
Anyway that is how I understand why I can pan fry in olive oil but not deep fry with it.