You just admitted that it takes the force of government for the 'no smoking' crowd to compete with the 'smoking allowed' crowd.
If they can't compete without government interference, is that a free market economy?
We don't have a free market economy. We have one where both the free market and the political market fight and find compromise on issues in the laws.
For example, my profession is based on the political. I am a CPA and CPA's came about because their was a need the market didn't serve. Good financial information needed to be available for investors and lenders. The market failed to provide this on their won so laws were passed to create the auditors and audits. Recently the structure that was established long ago is not working and it appears the political will use more of its power to control audits and auditors.
So, our system is not a pure economy system or a pure political drive system. Its a combination and the ideas and issues need to be won in both markets. Unfortunaltely for smokers they may have had a fighting chance in the economic market but after the associations bailed they have no hope. They lost both fronts.