Well, let's put it this way.
They were still employed until the ban went into effect.
After the ban, when business went down due to smokers, their friends, and family finding a different venue that still catered to their desires, the waitstaff was let go and businesses that were already on the cusp because of the economy went under.
When you're already teetering on the edge, it doesn't take much of a push to make you go over.
Do you insist on taking your family to smoking sections in resturants? Every smoker I know asks to be seated in the No Smoking section; then lights up as soon as they leave. From personal experience (and this is just MY experience) I usually have to wait for a table in the No Smoking section, but can get seated quickly (if not immediately)if I'm willing to sit in the Smoking Section
Granted, when you are teetering on the edge of going under, every penny counts. I just question whether the smoking issue in resturants hurts them at all.