I live in the UK, and the wonderful smoking ban came in last summer. I agree smoking is bad, but I don’t think anyone can disagree that 'Smoking does make you look cool' it’s a fact!
Maybe due to all the previous media and movies, but the same applies to certain drugs thanks to the wonderful world of films (Pulp Fiction for example).
Since the ban came in, I have found allot of people have quit smoking. It has reduced the amount I smoke, but it also has had a knock on effect. Some of the most interesting or fun people I know smoke, they go outside for a smoke...others follow as they don’t want to be left inside.
Smokers are a dying breed (in more ways than one!) but alcohol is bad and binge drinking is on the increase. People are inclined to do things they shouldn’t, as it often brings other complimentary enjoyment. I wouldn’t discount this market; you just may have to target it with the above comments in mind.