Merino (and to a lesser extent other wools) 'work' because they are hydrophilic (absorb water) and have a coating of fatty acids/lanolins.
The hydrophilicity leaves the bacteria to dehydrate on the surface of the fibres and be more susceptible to the bactericidal effects of the fatty acids etc.
However, the fatty acids etc are valubale chemicals in their own right (cosmetics industry) and much merino wool is harvested for these chemicals before the fibres are used for clothing.
Also the cheaper merino wools need to be pretreated to increase the crimp of the fibres, this pretreatmet is usually based on high (relatively) temp washing which again can leach out the 'useful' chemicals.
The definition of 'merino' in clothing just refers to the animal origin of the wool and not the subsequent degree of processing – so your cheap merino will have likely lost many of the magical properties as it is effectively a by product of the chemical industry.
And yes, it may smell less but is still full of bodily secretions, dirt, dead bacteria and skin cells 😕