I'm actually surprised that this is making the news. Maybe it's because so few people can afford to actually own their own apartments in NYC...
My brother lives in White Plains, a NYC suburb, and smoking is not allowed in the apartment buildings where he lives. Where I live, in the city of Rochester, NY, I'm not allowed to smoke in my apartment (top half of a house). I do still smoke my pipe in here, but that is only because the scent disappears within a day or two (not the case with cigs or cigars, which I do not let others smoke indoors).
The way I see it, the owner/landlord can do whatever he sees fit, within reason, so long as he owns the place to ensure the safety and cleanlyness of his property. As such, I think not allowing smoking is no different than not allowing pets. Would my feelings change if I smoked cigs, didn't have a porch and small yard and didn't have any options for a "smoke-friendly" home - maybe?