I am, unfortunately, one of those "cheap" customers. I have been singing in different karaoke venues for about 12 years but, due to where I live (very rural) the closest venue is at least 20 miles away. Getting home without hitting a deer or passing a trooper is a real issue, and in my past position I was a well-known school administrator in my community. Getting a DUI would have been a real problem. More recently, I developed an autoimmune disease and have had to give my liver time to recover. What I am saying is, there are many reasons besides cheapness that people choose not to drink heavily.
That being said, no matter what I order, I tip heavily because I know that times are difficult and I want my venues to do well. Even with a $1 soda, I leave a $5 tip. I truly wish there would be a cover charge, or a "singing fee" per song, because I feel badly that I will not be spending much money in relation to the amount of enjoyment a good night of karaoke brings. I've seen many KJ's move on because the bar wasn't making enough money. I am always looking for new venues.
I don't know what the answer is for smokers. I certainly don't miss them and used to travel to a neighboring state to avoid smoky bars until my own state banned indoor usage, but it is true that at any given time, half the "audience" is outside in the cold.