if ISP's are starting to block email to port 25, should I do the same on my SME server, leaving smtps open on port 465 ? Or will this block too much email ?
IMHO, most ISPs are doing the wrong thing motivated by laziness. Blocking incoming traffic on port 25 is just a matter of suppressing the symptoms. Instead they should IMHO be concentrating on finding the host that is sending traffic on port 25 and when not allowed block outgoing traffic for that host, have the responsible person (the customer) clean that machine and open up the port again.
To save them work they just prevent all traffic on port 25 for all users, so they do not need to investigate, but the customer might still have a infected system. For your local network the same analogy might apply in you being in the role of ISP and the clients performing the role of the customers.
I would not advice you to do so, instead invest in a proper AV suite and regularly update virus definitions and scan all systems. I think your network benefits more from keeping systems clean than suppressing the symptoms of compromised systems.
IIRC SME Server (at least future versions as of SME Server

will not allow sending mail to external addresses when the user does not authenticate to the server, this will limit the amount of outgoing messages (when a system is compromised) by a mailbot as they normally do not authenticate, but use the public service.