Personally I don't view the addition of alcohol or smoking in games to be automatically presenting those things as cool. They're usually used for character building.
Depending on the alcohol someone drinks it can show what class of people they belong to. For example expensive alcohol can indicate wealth. Bootleg alcohol can indicate the person isn't entirely opposed to law breaking. Constantly drinking strong spirits can indicate the person has some personal issues. Same with smoking. Cigars are often very expensive. Pre-rolled cigarettes cost a lot more than those you roll yourself. A pipe can show a person is old fashioned or belongs to a high class in society depending on its style. Someone who smokes even in places where it's not appropriate can indicate the person cares little for social expectations or is even reckless.
Additionally there is nothing stopping a dev or character creator team from showing negative effects from vices like smoking or drinking. For more character building a person who smokes could have a nasty cough, or a person who drinks could be shown to get nausea if they do it too much. They can even show characters getting irritable if they don't get their fix. Just because said vices are in a game doesn't mean they are making it look glamorous or cool. It's all about how the presentation is done.
Look at Gerolt, an alcoholic blacksmith who is endlessly in debt. His drinking strongly suggests it is at least partially responsible for his finances. He is also frequently criticised for his drinking and it is said more than a few times he would be better at his work if he had control of it. Certainly the npcs that interact with him don't make his addiction appear cool or even acceptable behaviour.
Humans are flawed creatures and the best way to make characters interesting is to also make them flawed. Giving a character a vice like smoking or drinking is an effective way to do that.



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