I don't have the time or desire to read the entire thread, but the smoking ban has been in effect for nearly ten years in the entire state of California, and yes, the bars took an initial hit for the first few months, but nearly all have overcome. The bars and clubs are as crowded as they ever were and most owners and their employees are making money hand over fist.
The live music scene is fantastic in LA and SF without smoking in the clubs and the music scene in the suburbs of SF and LA are doing just fine as well so it's not a Big City vs. Suburb thing either. The fact is smoking bothers nonsmokers and the people have spoken, the legislature listened and took action despite the big money tobacco lobby. And frankly, I much prefer the ban. I don't smoke, but have many friends that do, and they've gotten used to it. Some of them are even still friends with an outspoken nonsmoker, especially after I tell them the horror stories of my times in hospitals due to numerous lung ailments.