The choice argument is compelling, but as mentioned above, it doesn't make much sense to talk about choice unless we talk about all the things that are thrusted upon us too. Not many people are so privileged that they get to be a pure product of their own choices. That's not to say that personal responsibility isn't important either, it just operates in a complex context (why, for instance, are there so many smokers who are financially disadvantaged given that cigarettes cost so damn much?).
The way Australia is arranged currently as well is that we all pay for smoking in various ways - we all know someone who is sick or has died from the effects of smoking, we've all experienced second-hand smoke involuntarily, eventually our tax dollars pay for the care and treatment of people who have spent their lives smoking. Yes, smoking is an individual choice, but it can hardly be said that the ramifications are purely individual (it's the same with many of the choices we make for ourselves).
Aside from looking at smoking as a nasty habit, it might also be worth understanding it as a coping mechanism, and trying to figure out how it helps people beyond the fact that it's addictive. Is it most commonly taken up by the hard done by? The alienated? The disenfranchised? Maybe instead of banning cigarettes, we could do more to discover and address the causes of smoking. That might be win/win, because we wouldn't be taking away personal choice, but we could help people who don't feel the personal agency necessary to quit.
As an aside, the fact that places that sell tobacco will go out of business isn't really important if you admit that it's bad to make money off others' addictions. As in, by itself it isn't a great reason to allow smoking.