Re: cigarettes, they're actually smoked much less than in Europe, despite being cheaper and having less graphic warnings. Alcohol is certainly consumed differently as well, but most people grow up and stop binge drinking past a certain age.
I don't really know about the cigarette smuggling you're talking about, so I won't comment on that. If you can point me to an article about it, I'd be interested to read more. I do find it hard to believe that it's had the same effect on communities as drug trafficking in Northern Mexico.