When I quit smoking cigarettes (Camel non-filters) in 1978, you could smoke in restaurants (speaking of here in California).
When I would go out to eat with the girlfriend, I would not smoke in the restaurant out of respect to the non-smokers who had gathered to eat. Just what it was to me.
Whether then or now, you get in to potential dicey situations when folks convene for a public events (fireworks, car racing, farmers markets, swap meets, etc). I think you simply need to take it on an event by event basis prior to firing-up to assess the crowd and so forth.
Its a tough call. As Mark said, you most likely took the proper route. On the other hand, I suppose it might be said how long you had "established your stake" with a lit cigar prior to the wife and husband arriving on the scene. In that case, one would think they would've just "pulled up" and moved further down upwind
Just sayin...