Reason for the Prohibition of Smoking on Yom Tov
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Answer
Hello,
This is exactly what is mentioned in the Gemara, that even though 'mitoch' is said, there is still no permission for something that is not for everyone.
See sources.
Source
Babylonian Talmud, Tractate Ketubot, page 7a
But now, it is permitted to make incense on Yom Tov, since lighting a fire for need is permitted - it is also permitted without need! He said to him, about you it is said: but only what is edible for everyone, something that is suitable for everyone.
Neshamat Adam, Part 2-3 (Laws of Shabbat and Festivals), General Rule 95, Section 2
The interpretation of the sugya in Ketubot follows literally that in incense 'mitoch' is not said, since it is not for everyone (and according to this, smoking tobacco on Yom Tov is forbidden),