Things like this don't surprise me. This is just completely unrestrained market forces at work and the logical result of that. Well maybe not the economics itself, but the philosophy of chasing bottom lines/ profits at any cost.
If you study economics, this would raise some interesting questions along the negative externality / public good / freedom of choice... line of thought. Sorry, been a long time since I took economics, may have gotten the terms messed up.
But yeah... Why be shocked? If I were forced to guess, I'd say that this trend is happening all over the world, just at a slower rate. The average age of smokers keep getting lower all the time and because it's gradual, we're likely to accept it more and more. And somehow, it wouldn't surprise me at all if three decades down the road, we'll have people screaming that we should allow kids as early as these toddlers to start smoking... Because it's their freedom of choice.