Of course they did. It was common. People smoked everywhere. The hysteria over it nowadays is akin to looking back at Victorians who gave their babies gin and laudanum to quiet them down.
However, I'm pretty sure in years to come people of the future will look back at this generation of parents/children and be horrified at the amount of sugar they were allowed. The amount of fizzy drinks, fast food, Ultra processed shit. The obesity crisis that we pretend isn't happening. People in the 1970s smoked - but they were also much thinner than we are today. In the 1970s we got 10p on a Friday to buy sweets with. And that was it.
Future generations will probably be horrified at the smart phones children of today were allowed. The toddlers on iPads gazing at Peppa Pig in restaurants because no one could possibly expect a child to be without a screen whilst they were actually eating. The hardcore porn that pubescents and pre-pubescents managed to access without their parents' knowledge. The gaming addiction - the hours spent on Fortnite, or Call of Duty. The bullying, the mental health crisis that we perpetuated by giving them social media, TikTok, Snapchat. The paedophiles they were unknowingly exposed to. The dick pics that popped up on 12 year old girls phones. I've worked in safeguarding and it would horrify a lot of people who have no idea what their children are actually viewing.
The Andrew Tates who are influencing boys. The pro-anorexic sites that are influencing girls. The normalising of fillers, botox, veneers, surgery - because you are only worth it if you are pretty. The gambling sites, the easy credit card debt. The weight loss injections. The vaping. The desperation to have holidays and Instagram worthy houses, even though you aren't a celebrity and you can't afford it.
Spending time with grandad who had a Park Drive fag hanging out of his mouth was a lot less damaging than a lot of modern life.