I feel like as a country, we should be pragmatic more broadly. Not just about tobacco, but about anything a person could enjoy, extending to the black market. Determine the things that people will consume no matter what the taxation, social, or regulatory structures are. Quantify the costs of the consumption of those things openly and honestly, and create systems to build those costs into the price of the thing consumed.
I think we're running aground on that right now, because federal & provincial tax on enjoyable things is set at a rate that isn't indexed to the costs incurred by the enjoyment of those things.
Personally I enjoy Nicotine, and I would like to know that the price I pay for it is fair to the base of taxpayers who fund our healthcare system. It doesn't stop at Nicotine though, of course.