I think Smart Blur can be a pretty good replacement, I used to use it before I got my hands on Topaz too (that pamkips tutorial was awesome indeed =D), but I honestly think that entire step can just as well be skipped, I'm pretty sure it doesn't change the end result at all, especially cause the image is resized to such a small size. Topaz can often just make the icon worse so I don't think you're missing much without it :)
As for layer masks, here is a basic guide that shows how they work, by lil_art - I use brushes instead of selection tools to make them, but the basic principle is explained in the guide so I think it's really good, plus it's quite short and simple so doesn't take much to read through it :)
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I think Smart Blur can be a pretty good replacement, I used to use it before I got my hands on Topaz too (that pamkips tutorial was awesome indeed =D), but I honestly think that entire step can just as well be skipped, I'm pretty sure it doesn't change the end result at all, especially cause the image is resized to such a small size. Topaz can often just make the icon worse so I don't think you're missing much without it :)
As for layer masks, here is a basic guide that shows how they work, by