Soap is not to be used. If you stop using it, the dry skin should disappear. Most likely, the odor will as well. However, some odor is normal in many men. The smegma may have a cheesy smell to it.
Stop using the soap and rinse the inside with just plain water from now on. Trust us on this. Nothing will go wrong if you don't use soap. Certain bacteria are meant to live in there to keep things in balance.