I've been thinking about this on and off for a while since I've started posting on BoB.
I find myself to be quite prone to the sky is falling mentality; how could one not when you look around at the various other "sin tax" type products that have been severely curtailed in the past few years/decades.
My thoughts on it simply come down to the following. I am on an extremely fixed income as well as a student. Even once I'm out, there are still a huge number of factors which will restrict the "I'll pay anything for my tobacco" mentality. I'm faced with precisely the dilemma you are talking about; should I just quit smoking or make it fit because I love it?
I come down on the make it fit side of the argument. Maybe this means I find two or three blends I really love and buy as much of it as I can afford now to try and mediate the long term price increases through cellaring etc. Maybe I adapt and smoke cheaper blends. Maybe I force myself to actually learn how to carve pipes and trade them with fellow smokers for tobacco, thus justifying my tobacco habits. Maybe I start growing an acre or so of tobacco and teach myself to blend. There's always a way.
But I'm not going to stop smoking my pipes. This is America, a country quite literally founded on tobacco. We're the people who refuse to just sit there and take it. We always find a way to grow, prosper, and develop our lives. Some of our most profoundly important leaders and thinkers were pipemen, devotedly so.
To me, yes, the cost of smoking is high. But the cost of giving in, of complying with the paternalistic government trying to force us into "good health" by taxing tobacco to death is a much higher price. What's that old saying? They came for my neighbors and I said nothing, when they came for me there was no one left to speak. Yeah.
We're a tiny portion of the population, but we don't have to be bullied into submission.