As an ex smoker I think anything that can discourage young people from smoking is a good thing. As a kid I was drawn in by the designs on the packets, which were the same colours and designs that were in the huge road side posters. On the side of buses, F1 cars, Motorcycles, the ad man was a busy bloke for the tobacco company's years ago.
The government are under constant pressure from Europe, anti smoking groups and from within the NHS to restrict its usage and advertisement. Those little packets of fags behind the shutters in supermarkets still bear the fancy designs that look appealing to youngsters. So by hiding them, they don't see them and maybe just maybe less inclined to start smoking. Kids follow trends. If at a school the trend is smoking is for mugs then they will be less likely to start and vice versa.
As for the hypocrisy, so f*cking what! If they were cheaper more people would smoke and more people would be putting pressure on the NHS by dying an agonising preventable death.
Feline is bang on with his hook to buy a custom guitar from him with the money you save from tobacco. I did it and I loved it :D :D