Wow this has moved on.
I think that there's several schools of thought, all perfectly valid and with varying degrees of extremism.
One is the 'I want a proactive childminder who is very child-centred and only does child-focused activites', another is 'I like a relaxed environment for my child and am not bothered about whether they spend their day going for coffee with friends'. My personal view is whilst a 'Nana-type' CM is lovely I would want my DC to have access to activities, which it doesn't sound like this CM is providing.
Then there's the 'I want my child kept completely away from smoke' through 'as much as humanly possible' to 'within the letter or the law'. I wouldn't want my DCs intentionally exposed to smoke, which is what you're doing if you're a CM taking a mindee to a smoker friend's house. My DH used to smoke when I was nanny - I hated it because it did rub off onto me and I was absolutely scrupulous about making sure it didn't come into contact with my charges. There's no way you can control everything but some people are more laissez-faire in their attitude than I. As your CM is SE you can't dictate what she does. You can, as a parent paying for a service, request that she doesn't do certain things with your DD. She's entitled to refuse to change the way she does things, your're entitled to remove your DD.
I'd also be suspicious about the length of contact - a quick pick-up-to-get-away-from-the-dog isn't going to leave a pronounced smoky smell on a cardigan. An extended cuddle would and whilst I wouldn't mind my DC having cuddles with CMs friends in principle I wouldn't be too happy with smoking friends doing that and I'd have thought the CM might be a bit more sensitive about that too.
The dog was present so isn't out of the equation, that would also annoy me. Not so much the friend looking after the dog but the fact it wasn't secured and the fact the CM didn't think to mention it.
Having said all of that if you haven't told your CM what your views are then she isn't going to know and if this thread has revealed anything it's that different people have different standards.