Well, it can be bad for business if the smoker's don't GO to the bars anymore. I'd say there is a lot of money at stake here, for the business owners.
I know "we" don't spend our money in a no smoking place restaurant. We take our money to the bar that serves food.
That's assuming smokers go to bars just to smoke, not to drink or eat. Most people go to drink or eat, the smoking is kind of a secondary thing, being you can do that at home if you can't do it there.