Counterproductive in EVERY POSSIBLE way. 1) people will just smoke more; 2) reducing the nicotine in NO WAY reduces the harm from all those other poisons.
Although it's true that reducing nicotine doesn't create a 'safe cigarette,' it can be useful for those people that want to smoke while reducing their reliance on nicotine. I once switched completely over to nicotine free cigarettes in an attempt to get rid on my nicotine addiction. I noticed that after about 1 month, I could quite comfortably go for hours without even thinking about smoking, at that point it was only the psychological triggers that caused me trouble. Like all attempts to quit smoking, however, it only took one puff off a 'real cigarette,' about 6 months later, to set me on to smoking full-time again.
In any case, what all these tobacco control types forget is that people won't stop smoking until they want to stop smoking. A few months ago, I saw an interesting news special about a town that borders Turkey that was captured by ISIS, whom threatens severe punishment to anyone caught smoking. Guess what? People in that town were still smoking, although they were hiding right next to the border with Turkey to do it. So, even when enforced by a brutal dictatorship that's perfectly willing to physically punish infractions, tobacco control still doesn't work and the black market thrives.