My mum is in full time care at 51yrs old due to vascular dementia brought on by heavy smoking since the age of 14. It costs roughly £1000 a week for her care, I'm sure it wouldn't be long until the tax she's paid in PAYE, NI, Duty on cigs is all absorbed.
You're probably right but long term there'd be a massive benefit as people's health improves.
But I agree about removing them from sight completely. Will help people quit on their own accord. When my mum used to try to quit she'd managed a few weeks but every-time she went to the shops she'd see them and the force of habit and the little voice in her head would make her buy them.