The product you just pitched already exists. They are commonly referred to as "electronic cigarettes" or "E-Cigs". Essentially it is a device that (usually) looks like a traditional cigarette, but the majority of the length of the device is actually a battery which powers a small heating coil (called an atomizer) which vaporizers a liquid that is stored in it's "filter" that contains nicotine. It feels like smoking, it looks like smoking, but it isn't.
There are NO known negative health effects of using an electronic cigarette. The "smoke" (which is actually just water vapor) isn't harmful, contains no carcinogens, and doesn't stink. You still get the nicotine you need without the cancer and second-hand smoke you don't want. You are still inhaling nicotine, which is addictive. Using a e-cig is also habit forming just like normal cigarettes and you will find yourself subconsciously reaching for it (if you are like me) like you do for your pack of cigarettes.
If you'd like to know more, please visit:
http://www.e-cigarette-forum.com
The community there is very nice, and would be glad to help you out.
There are also some good tutorial and FAQ videos on youtube.
Do yourself a favor and at least have a look at them. If anyone has any questions, I'll do my best to answer them. Don't hesitate to send me a PM if you don't want to post in this thread about it.