Many countries seem to do that for the sake of awareness about the damage it can be done to our inner organs by the continuous consumption of tobacco smoke. Here in Venezuela, it is not only oictures of damaged lungs, our authorities have gone ever further than including pictures of tumors and destroyed teeth embedded on the cigarette packages. Though, the tax of tobacco seems to be relatively low here, since people continues to smoke regardless of the accumulated prices though the months.

By the way, I am sorry for what happened to your grandfather. It seems there is people who truly are willing to through some of their time in earth for the sake of satisfying their craving for nicotine. Hopefully he did not suffer much from that disease...
I had a family member (sister of my grand mother) who also liked to smoke much and she even liked to smoke with the lit extreme of the cigarette inside her mouth. I never understood such a thing.