As a smoker, I can tell you that I simply don't notice the images at all. They annoy me on a conceptual level, since I consider it a sign of creeping dystopia.
"Citizenry! It has been brought to our attention that some of you are using your personal capital to legally purchase things that are bad for your health. This is a big no-no! In order to suitably modify your behaviour, we have placed images on your product that we hope you will find viscerally repulsive, in order to provide the necessary psychological impulse to your subconscious so you will do what we want. Have a nice day and don't forget to pay your taxes!"