As a guy who owns a business, and owns commercial property, it kind of irks me that that smoking is not permitted in MY OWN PROPERTY even though it is legal. This is a property that I pay mortgage, taxes, expenses, insurance, etc. I have responsibilities toward my business and property, and I have the legal right to protection from trespassing. Of course, for me it makes no sense to smoke inside my shop because it would negatively influence the price of my wares. It would steer customers away from my shop, and may cause potential employees to not want to work there. But, it is my shop, and I should have the freedom to do something legal within the shop, even if it's to the detriment of my business. Business owners do lots of stuff that are detrimental to their business or the community, but there's no ban on it.
The crazy thing is that if I wanted to open up a cigar bar, or someplace that allowed smoking, there's many places where I can't, even though the demand is there. If I wanted to open up a live music establishment that catered to smokers and hired bands that didn't care, I couldn't in some states. Now, say I wanted to open up a pron shop/peep-show. Sure it could be a nasty atmosphere, and lots of people won't go there. But, that's their choice. Most people won't want a job cleaning up jizz and jag rags, so they won't work there even if it's the only job in town. From body fluids to seedy characters, it could be a 'hazardous' place to work. And some would argue that it affects others, in terms of marriages, families, communities, etc., but they still exist in this country.
Now say you had a rehearsal space that you own in a public area, such a commercial space. You play loud music, which can be detrimental to one's hearing, but it's sound proofed so that it's doesn't get outside. The people going in know that it's going to be loud so they get hearing protection when they go in. You don't allow anyone to come in to rehearsal other than band members and people that you invite. Say they passed a law that said you cannot be over a certain number of decibels inside your rehearsal space because someone from the public might wander in and get hearing damage from it.
IMO, let the market do it's thing, because in the end it boils down to economics. If having smoking kills your business, it's your choice. If you can't get anyone to work there, it's your choice. You'll either ban smoking on your own, or you'll go out of business. If a having non-smoking bar is good for business, then I doubt someone in their right mind would allow smoking. If a couple of smokers are ruining it for everyone, the place would be best served by banning smoking. But, if everyone goes there for a smoke and doesn't mind the environment, then let it be. In short, if allowing smoking helps business, then let them. If banning smoking helps business, then let them. But, it should be the decision of the individual property/business owner, not the government.
Right now, the trend is toward having non-smoking places, but that doesn't mean that there can't be a niche for a place that allows it to make money from it. Right now, there are so many non-smoking places that there are plenty of options for non-smokers. From the cities I lived in, there are almost no options for smokers to enjoy live music and smoke indoors. IMO, IME, there's enough people on both sides of the fence to allow for both kinds of places without infringing on each other's rights.