What you say may be true, but the same can be said for fast food, or alcohol, or just about everything if you want to split hairs about it. People usually don't notice reductions in freedoms until it's too late.
Cinc pretty much hit the nail on the head. THe governments, both Federal and State, make so much money off cigarette sales, it's ridiculous for them to do anything serious to challenge it.
Take for example, the RICO trial they just lost. The feds tried to say that Big Tobacco profited illegally from cigarette sales, and sued for 200billion or some nonsense. Oh, by the way, they didn't happen to make it spend alot of time talking about the fact that they made boatloads of cash in taxes for the years they claim money was made illegally.
THe states have no grounds to cry about rising health costs due to smoking. They raked in over 200 billion from the major tobacco companies in 1998 (one article of the Master's Settlement Agreement of 1998) among other things...