For years the belief was that smoking was very healthy and helped keep your lungs clean and stopped the development of such believed conditions as lung worms. Queen Victoria was an avid smoker and a health fanatic to boot (well...she went walking a lot, I didn't say she was a GOOD health fanatic).
Oliver Cromwell, the man who banned theater, mince pies, football and christmas, still used to smoke despite banning everything he considered sinful or excessive.
Other traditions hold tabacco and/or smoking as a very spiritual act. The native americans used tabacco in shamanic rites, opium has been smoked for centuries, both for recreation and spiritual purposes. Some shamans would construct low huts with a smoldering fire in it and sit in the smoke to induce hallucinations.
So there were plenty of reasons to smoke before we found out how bad it was. (un)Luckily, our characters are blissfully unaware of the long term health problems associated with smoking. Heck, some of the races might not even HAVE long term health risks. But there are plenty of reasons to pick up the pipe and join the world of virtual smoking
Food for thought
