I found the term startling and amusing at first, but I've decided I don't mind it. One of the coolest things about language is its constant evolution, reflecting the ever-changing zeitgeist whether we approve of the changes reflected or not.
Being a digital audio workstation (DAW) enthusiast, I've gotten used to the word analog being thrown around on DAW forums quite liberally, but almost never disparagingly. Audio engineers are always striving to capture the magic of "analog" via digital tools, and the term has a rather wistful, nostalgic quality to it.
Plus, cigarettes have a long history of of being attached to a wide variety of colorful idiom and slang. In Chicago, for instance, they are known as squares... So its OK with me.