Vaping is mostly illegal because tobacco companies have to switch. They have a lot of production facilities. Those need to be tuned down, closed or converted. That would cost them a lot of money. So it's best to slow that down with laws.

Tobacco companies make the laws. If anything related to them is outlawed or regulated or taxed, it is because they want it that way.

Things that are outlawed become regulated. Things that are regulated can be made expensive. It takes money to compete in a regulated market. It's a long-game. And tobacco knows how to play a long-game.

My guess: They'll wait until more small companies pop up, then buy them all, and then kill tobacco, which is much less profitable than producing vape stuff. And then they'll triple the price.