In order to use the default you cannot supply a value to the column. It is converting the '' to the 1900 date and not using the default.
Try this.
create table tt99
(
Datetime2 smalldatetime default Getdate() ,
Description nvarchar(200)
)
insert into tt99(Datetime2, description)
values ('12/20/08','Testing the Default')
go
insert into tt99( description)
values ('Testing the Default')
select * from tt99
drop table tt99