The prohibition laws on alcohol certainly unleashed a bunch of bootleg rot-gut poison that was never meant to be consumed, but made it to market unchecked. Over regulation in a form that makes it impossible to sell a legal product is just as good at creating these same circumstances.
Overregulation isn't useful any more than no regulation is useful. We are what we are, a decidedly mixed lot, and thus give reason for the need to regulate our dealings with others at large.
Prohibition was largely the result of Bible thumping religious fanaticism that drove the Temperance Movement in the late 19th and early 20th centuries. And that Great social experiment was a thudding dud. Forbidden fruit is attractive to many.
The war on tobacco consumption isn't a religious war and it's not likely to ever result in an outright prohibition, not with the failed example of Prohibition as a lesson. The current approach is much more effective and will essentially do what it's intended to do, make smoking less and less popular, glamorous, etc, until it no longer matters. Death by a thousand cuts works.
While most of the country would like to see smoking go away, they're not yet at the drum beating, tambourine shaking, Bible thumping, marching down the street, level of action.