If you can claim 160 points without any for a skilled job, you have the right to expect that INZ will continue to process your application under SMC. However, if you can't get the offer of another equally skilled job to your present one, before your present visa expires, you will be in the same position as someone who is applying from overseas with no job offer, and in that case (no job being forthcoming), the best outcome INZ can give, if you're successful, is an SMC Job Seach Visa. Also, without a skilled job offer before your present visa ends, you would not have the legal right to stay in New Zealand.

You would not be eligible for a visitor's visa - many people think this could be a stop-gap when there isn't any visa that exactly suits their real situation, but it's not the case. A visitor's visa is meant for someone making a limited stay in NZ, with a life and responsibilities in another country that they will be going back to afterwards. As you've been living and working in NZ, and have applied for Residence, it's very obvious that that is NOT your situation.

I agree with your LIA, that your best hope is to find another skilled job if you possibly can. Otherwise, to keep legal, which you MUST do for INZ to be able to continue processing your SMC application, it looks as though you would have to leave the country for the time being, until EITHER you could get another skilled job offer which would help you to another temporary work visa, OR there is an outcome for your residence application.

Ask your LIA to explain to you anything you aren't sure you understand.