I am really hoping it's just clutch related.

 

Well there's some disconnect between his final drive sprocket and the crank from the engine, so it seems to me that the weakest and easiest spot to troubleshoot is the clutch. It could need adjustment or the friction discs could need replacing... it's where I would probably start.

 

based on the smoke and the complete lack of movement afterwards i'd bet on clutch

 

Before you went out on this particular ride, did your bike feel like it had power but was lagging in take off like your clutches where slipping, or was this the first time it ever started lagging, and just completely gave out all together.
If its been slipping for a while now than i would say you need new clutch pads, but its odd how it can just give out so quickly, unless something is seriously messed up in the clutch area.
Another thing if its not the clutch at all and im saying this because it happened to me in my Nissan truck you could have melted all the teeth off the trani gears if they wasn't getting enough oil. I know when it happened to me in my truck it went out just like that there was smoke and loss of power to the drivetran than all i had was 5th gear and it kinda sucked. Than again the motor and drivetran are all in one and if you have motor oil you have trani oil so im really not sure without looking at it its hard to diagnose these are just my opinions and suggestions but let us know what you find and good luck.

 

another thing you can try before pulling apart the bike and getting into something your not sure about is starting the bike put in each gear and let off the clutch slowly and see if any gear does grab that might pin point your problem a little better

 

Well, cracked it open last night to get a look at the clutch disks and little to no luck there. I could only see the very edge of the disks because I can't get the basket off. :/

 

+1 use some wheel stands