I definitely think smoking should be banned INDOORS unless it's a private home. Also within 10 feet or so from the entrance to a building. Banning it outdoors is a little too restrictive, in my opinion, as usually you can get away from the smoke if you're sensitive to it.
I live in California, where smoking is banned in all workplaces including bars and restaurants (except the outside areas of bars). I am really grateful for that fact when I'm out at a restaurant - the smell of smoke just kills my appetite and my sense of taste. When I visit other states and see people smoking in restaurants, I just can't tolerate it anymore. Same with bars... my husband is a musician, and going to see him play (and for him, playing a gig) used to be terrible because I'd have to breathe the smoke, and then my hair and clothes would reek of it - yuck!! Now it's much better.