Where's the rebel in you? Time to buck the system!!! Seriously, that sucks, and if my management started proudly proclaiming their restrictive policies, I'd either leave, or vape just for the spite. Of course, job markets may vary, and this might be a great gig you've got going on, so giving the boss the finger may not be the smartest thing to do. I'd work on stealth
vaping and of course, the bathroom. Pretty soon, they'll notice a correlation between the smokers and trips to the restroom, and may restrict potty breaks even more. In regards to changing their minds with logic, I probably wouldn't bother, as they've seemed to have made up their minds. Similar examples of this are found all the time in our political system - changes and programs that benefit a few, but screw the rest of us. Petitions, protests, polls all have no meaning or impact. Same goes for your management. Avoid the reasoning and do it anyway!!!
Good luck on your issue.