These questions get asked all the time. There is a search bar tool you can use just above the list of threads - but it isn't very clearly displayed, being the same colour as its surroundings.

Foreigners are spread around according to where they work/study, but the highest concentration of foreigners I would say is in the area around Hong Shan Dong Lu. Lot of waiguoren there. Not many foreigners in the east or west of the city, as far as I know. Kunming has the worst of both worlds in that it has the traffic, size, and crime of a big city, but doesn't have the sophistication, culture, associated with big cities. Small town feel in the bad sense of the word. The cuihu (green lake) area is probably the nicest part of the city. The north west and northeast of the city are hilly and still have some old red-brick buildings. The rest of the city is flat and is mixture of tower apartment blocks and shopping malls. The south west of the city is the Dianchi tourist area, with parks (though most of them don't have much in the way of grass or flowers), hot springs, and some big newish shopping/entertainment malls (the Aegean and Nanya). Basically all of Kunming is pretty mediocre, so just live near where you are going to work, or if you are a person of leisure, live close to either a mall or cuihu with all its bars and cafes, depending what you are into.

Tiger is correct: smoking has next to no utility, but it has huge costs. It's literally setting fire to money and other resources in return for damaging you and other people's (including your own children's) lungs, skin, etc.

The government does not pay for healthcare, apart from its own and SOE employees (the state pays about 80% of the costs of major procedures for those people). They are trying to get 90% of people insured, but the insurance coverage is crappy. So basically, it is not in the government's financial interest to get people to stop smoking. They should follow other countries and up the price of cigarettes through taxes, and tell people about the health problems caused by regular smoking.

Marcus, your post is true, but the causality you are implying may be the other way around i.e. the people who are laid back and adventurous (like I used to be) are thus because they haven't yet gotten really ill and aren't aware (or choose to bury their head in the sand, like you and some others) of the lack of hygiene and other standards.
For years doctors used to infect women who were giving birth by deliverying babies with unwashed hands. Even after some guy (I forget his name) looked at the evidence, worked it out and told doctors to wash their hands, the doctors carried on with dirty hands for another 100 years or so, killing thousands (perhaps millions) of mothers. Head in the sand. Carry on, hope things get magically better without any action.

anyway, this thread has gone off topic. Let's keep it as a place where we can recommend places we like and warn each other about places to avoid.