With the exception of 1 person, no one in my circle of middle to upper middle class college educated friends smoke (mostly in their late 20's, early 30's). The one guy that smokes only does so when drinking, and does so outside, and won't do so if it disturbs the people he is with.
Some extended family (that fit Sarah's stereotype above) continue to smoke, but most have quit.
Our state bans smoking in virtually every public indoor place such as government office buildings, restaurants, and bars (the latter two places coming under the ban Jan 1 2010).
I think it is still a grudgingly tolerated behavior among many who don't smoke. I'll see a few people smoking outside the entrances to shopping centers, malls, walmart, office bldgs, etc. The funniest place is outside the state Department of Air Quality building where the smokers take their smoke breaks. Air Quality indeed!
However as IBWino mentions below, Nevada had a lot of smokers (Las Vegas casinos).
More esoteric tobacco use, like pipes or cigars are "cool" to some who eschew cigarette smoking.
I wonder if the number of marijuana smokers outnumbers the number of tobacco cigarette smokers?