Sooner or later, people will learn their lesson about cigarettes:
Man asking for cigarettes arrested for harassment
Well, other than the crazy guy running around shirtless, it sounds like everyone else did the right thing in this story. I think being confronted by a crazy shirtless guy who wants to beat you up for not giving him a cigarette is a perfectly valid reason for drawing your pistol. The good part is that the story doesn't make a big deal about it...nothing about brandishing charges or anything.
Also, good on the responding officers who didn't just drop the guy when he came running out with a shiney object in his hands shouting 'freeze'...that would have to be a tough situation to show restraint in.