I disagree, but it has all been said pal.
If of interest, the following doesn't really prove anything (nor am I trying to) as it is one example, but others like it will exist.
Following the news I had a chat with a friend who manages a bar that I like. She is all for it, she thinks it would make their pub far better. They have a very small rear beer garden, which nobody uses for anything other than smoking, because nobody likes being in it any longer than they have to, when someone smokes. They tried lots of things, like putting plants and lighting outside, nice furniture etc, to make it more appealing to non smokers, but the size of it means it just takes one person to light up there and the rest can't avoid it. More than that, it affects the inside. The door to it is directly opposite the bar and all the staff hate the smell, just from the door opening and closing when people go for a smoke. The quizzmaster dude hates it, the chef hates it, and some of the regulars hate it, and joke it smells like a pre 2005 pub. They have put signs up to shut the door and regularly tell people off to not lean on it or leave it open, but it still comes through. The toilets also have high level windows that face out onto it so the smell gets in there too. The pub do great food, good selection of beer and drink, are better priced than other nearby pubs, and the staff are friendly. But they are not always that busy, and she is convinced that is largely to do with the beer garden and smoke smell from it. She is now trying to encourage the owner to make the beergarden non-smoking (they still have a front door where people could go smoke).
It will vary greatly from place to place, by size, users etc. But I don't think the argument that all pubs and the whole sector will suffer adds up.