At V6R1 this is what the help says:
Forwarding mailhub server (FWDHUBSVR) - Help

Specifies domain name of the SMTP server that this SMTP
server should forward all non-local emails. This makes
this SMTP server behave like a mailhub. If you do not want
the mail forwarded, you must specify *NONE.

Mail router (MAILROUTER) - Help

Specifies that a mail router should be used when SMTP
cannot find the name and address of the recipient in the
system or personal alias tables or when SMTP is not able
to resolve the address of the recipient. If you do not
want mail routing, you must specify *NONE.

So basically if you have User@xxxxxxxxxx in your iSeries alias table, or as your iSeries Domain, it will not forward the mail to the Hub Server or Mail Router.

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