I am trying to read the Hovey-Shipley-Smith article as defining the stable model structure on symmetric spectra as a left Bousfield localization (as explained on nLab) of the projective level model structure on symmetric spectra, which has level equivalences as weak equivalences.

Almost all ingredients are there in the article. All I have left to show is that the injective Omega-spectra are indeed the S-local objects, where S is the class of stable equivalences. By defintion any map in S induces a weak equivalence of simplicial hom-sets $Map_{Sp^\Sigma}(f,E)$ for E a injective Omega-spectrum. Conversely, lemma 3.1.5 and example 3.1.10 conspire to tell you that if a symmetric spectrum is S-local and injective, it is an Omega-spectrum. So, what remains: is any S-local symmetric spectrum injective?