I honestly would be offended. I have never been told no because I smoke. And I have held my fair share of babies. If someone did say to me no I couldn't hold the baby because I am a smoker I would probably distance myself from that person permanantly... sorry. I wash my hands, I never smoke just before I'm going to hold a baby, I don't smoke AROUND kids (I'm sort of a nazi about that) so i think that's enough. But if someone was to say NO because I smoke, period, I wouldn't be happy.
I agree totally, and that's kind of the problem. I would take offense too if it was me.. I agree that not smoking around kids etc, not smoking immediately before is enough, and I certainly don't want to offend or upset anyone.

Just to clarify though, my issue isn't that people smoke at all or not (that's excluding a lot of people if you do that!) but those who have just had a cigarette and come in reeking of it.
How do you say - without offending them - "I'm sorry but you smell of cigarettes"..?