I personally find this a fascinating topic, so much so that I did a PhD on it. The most natural loss function to optimize for is minimizing bending energy, and there are solutions to that going back about 300 years. However, in practice that's unlikely to be what you want - the problem with it is that its scaling properties give an advantage to curves with a longer arclength even if they have more curvature variation. Intuitively, the smoothest curve through a set of co-circular points should be a circular arc, but that's not what you get from the minimum energy curve, at least unless you impose an additional arc length constraint.
The long story is of course much more complicated, but the short version is that the Euler spiral fixes these scaling issues and has some other really nice properties. If your problem is "what is the smoothest curve that goes through this sequence of points" then arguably the piecewise Euler spiral G2 continuous spline is the distinguished answer.