We've had this law in California for years (all public facilities) and while there was much complaining and hand waving initially, it's been great for overall. You can dine and drink without the stink of cigarettes/cigar/pipe (and yes, I do love the smell of pipe-but not required while I'm munching on a linguine entree.)
Whenever I go to Las Vegas, I forget what it's like to smell smoke EVERYWHERE--and your lungs to react to it (last time, I got sick from standing over a smoldering cigarette at a roulette table).
BTW, California also does have limits on when you can serve alcohol: no liquor sales from 2:00 AM-6:00 AM at grocery stores, bars, clubs and resturants (yep, that's why our clubs often close at 2:00 AM: what's the point of being open, from their perspective, if you have to do last call at 1:45 AM?)
Generally, I think that California is an over-regulated state, but I can't say that I'm going to protest too much over valid environmental/health issues.