I think part of the justification for the ban on smoking indoors in public is a "greater good" argument. Some smokers will argue it's just as unpleasant for them to be forced not to smoke as it is for a non to have to deal with their smoke. I think it was jonmo who said a page or two ago "if you don't like the smoke, don't come in" - this is perfectly fair until we further examine the situation in the context of a crowd. The issue being raised is that a single person with a cig at the bar effects any patrons near him, the bartender, and possibly any service staff. If full integration was expected, it would fall to this flaw almost immediately.
I personally am all for both smoking and non-smoking sections, and am not sure why they were ruled insufficient. I remember as a kid whenever my family went to a restaurant, I'd always be embarassed at the big fuss my mam made about sitting in non-smoking; but that division seems to have disappeared over the last few years, and subsequently more and more states are doing the enclosed spaces ban.
Second hand smoke? Pretty well-established that it has negative health effects. The misconception that it doesn't is a display of political spin on scientific result, a la "global warming". Primarily the fact referenced is that the actual death toll of second-hand smoke is negligible or non-existant, but this fails in an identical proof that second-hand smoke is "harmless".
Oh, and if you smoke around your kids? Go to hell.