Both Jon & Dick at Backseat Drivers have taken up the smoking in restaurants and bars issue.
Frank at Internet Commentator, is pretty much in tune with how I feel about it.
If I were to leave out the rights (and I think the business owner's right to run his business as he sees fit is paramount in this case) and just talk about the product that's being offered, I'd make a big distinction between restaurants and pubs. I hate eating in a smokey environment, but on those occasions when I go out to a pub for a drink, I don't really notice the smoke. Except for the smell. Anyone who doesn't smoke is familiar with the "Wow, the smell of smoke off that shirt, pants, jacket, whatever" feeling that you get when you're back home. It's not pleasant, but I don't get worked up about it either.
For a great description of the smoking ban in New York, read David Teather's article from the Guardian. My favorite quote is about the smell of bars now, ". . . without the smoke to disguise it, you can now smell the bars: an unappealing cocktail of sweaty people, stale beer and vomit."