Often those smoke breaks are the most productive thinking done all day. When I quit smoking, I started missing out on a lot of information from other departments and management levels.

Not that I'm recommending smoking.

But it is remarkable that smokers had an excuse for informal chats every so many minutes during the day, with a change of location, situation, etc.

Nice observation!

My sister-in-law had quit smoking, but started again because (she says) she needed the breaks and non-smokers aren't given any breaks.

For me, it demonstrates your point regarding managerial perception: if hands aren't busy, the person isn't. Managers stating they won't even hire smokers due to productivity loss are clear examples of the manager that came by in your case from the article.

(also, I say much the same as your sister-in-law)