$from_name not being used

smtp.mail.inc lines 91-121:

<?php
    $from_name = FALSE;
    if (function_exists('i18n_variable_get')) {
      $current_provider = smtp_current_provider();
      if (i18n_variable_get('smtp_fromname_' . $current_provider, $message['language'], '') != '') {
        $from_name = i18n_variable_get('smtp_fromname_' . $current_provider, $message['language'], '');
      }
      else {
        // If value is not defined in settings, use site_name.
        $from_name = i18n_variable_get('site_name', $message['language'], '');
      }
    }

    ....

    // If i18n is not enabled, we get the From Name through normal provider
    // variables
    if (!$from_name) {
      if (smtp_provider_variable_get('smtp_fromname', '') != '') {
        $from_name = smtp_provider_variable_get('smtp_fromname', '');
      }
      else {
        // If value is not defined in settings, use site_name.
        $from_name = variable_get('site_name', '');
      }
    }
?>

$from_name is assigned multiple times here, but it's never used. Am I missing something? Since upgrading to the dev release I'm unable to get the from name to appear in my emails.