I don't think they encourage it. However we were on the Valor in December ahd there were people smoking in the cabin a few doors down from us. That class of ship has a big vent in the lower sectio of the doors and the smoke comes out into the hallway. I am sure the cabin steward can smell it. I don't know if it was allowed or not but someone sure was smoking. And it wasn't me.
Sandylynn,
You can read about their smoking policy in the cruise contract here . Smoking isn't allowed in the new Spa cabins. It is unclear in their contract on the policy for the other cabins.