I live in Iceland. I smoke.
I do not smoke inside my house, I do smoke in a small shed I built especially for the purpose of smoking.
In Iceland it is forbidden to smoke in public places (as in inside, not out in the streets) and the government has issued a statement that they are looking into forbidding all tobacco products.
However, the law banning smoking here in Iceland also has a kind of loophole. For example, if a bar has a separate room with a closed door where bouncers are posted, and paying members of some sort of "VIP club" are allowed to smoke there, then that's fine, apparently. Iceland's largest netcafé does this (it's no ordinary netcafé, trust me, I make a point of checking out as many netcafés as I can when traveling abroad) by having you pay a members one-time-only fee, and then charging you (one-time-only fee, again)for a key to the third floor which has a door with added insulation, twice the number of windows that can be opened as well as other means of ventilation. No one bothers us, no one minds. The law does, however, state that only members of the club are allowed access, meaning if I want to invite a friend to join me for some gaming, then he or she must pay the member's fee and buy a key.
If a bar wants to have a smoking section in Iceland that is open to anyone who wants to walk in, then it must be outside, you can't have more than two walls, and the roof should not cover it all or something (sorry, not exactly feeling like riding the bus to the university law library to look this up).
I'm all FOR laws against smoking in restaurants, clubs, bars, whatever. But my opinion is that smoking sections should be allowed, with similar restrictions as those mentioned above. Say... only a certain percentage of the establishments total public square meter space is allowed to be a smoking section, it has to have a closed door and better ventilation than most places have at the moment, and it should have to be very clearly marked as a smoking section and to have posters and such advertising those "quit smoking helpline" things.
On a side note, since I noticed some people mentioning coming home from clubs or bars smelling like cigarette smoke, I don't know how it is where you come from, but when I come home from clubbing at weekends... I'd rather smell like cigarette smoke than other peoples' sweat xP
EDIT : I'd like to add that I've been smoking for something around seven years, my teeth are white, my hair is fine and my skin is fine. I do have to make an extra effort to conceal the smell, though =/