Because it is a consumer product that is still in demand. Much like any "sin commodity" it is available to adults who pay to consume the product. Ethically, one must ask themselves if denying the right to buy the commodity would restrict both the individual's right to smoke but also the business's right to trade. In addition, the government's reliance on tax income from smokers is drastically worse than the burden of the taxpayer on medical care for smoking related illnesses. For example, over half of New Jersey's budget relies on income from smoking taxes. The government would be bankrupt, inflation would rise to an incredibly high level, and people would riot, because every single thing that they provide us now would be gone.
Tobacco has a history, particularly in the United States, as the commodity that built the country. It may not be politically correct anymore, but it helped America become a strong trading nation, with the greatest economy in the world.
Since smoking became viewed negatively after the first Surgeon General's warning in 1964, worldwide smoking has dramatically decreased, leading to a decrease of a nearly exclusive market for the US to dominate. The result is to raise the price until no one can afford it, then... the state goes broke.
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Because people did not enjoy the flavour of Cigarettes, however they became nicotine dependent, therefore flavoured cigarettes were made.