> Psychology is littered with well-demonstrated examples of humans acting against self-interest.
That is often claimed, but it is far from clear that it is actually true. The problem is that in order to make this assessment at all, someone has to decide what a person's self-interest actually is. There is no universal objective measure of self-interest because different people want different things (this is the reason trade works at all).
> People are consistently willing to incur personal cost for the benefit of a perceived community, and are even willing to incur personal cost to punish those working against it. Community recognition is not required to observe this behavior.
Sure. But how is this working against self-interest? I for one like being part of a strong, cohesive community. But I also recognize that building community requires effort, and that effort incurs a cost. So who are you to say that the cost I personally bear to shoulder my share of that burden is "acting against my self-interest"?
> People are quite susceptible to marketing
One man's marketing is another man's education.
> The history of the American tobacco industry is a great example.
Sure, but that was, in retrospect, an example of the tobacco industry just flat-out lying to people. If you want to argue that society benefits from having some mechanism to discourage willful deception I certainly won't argue with that.
But even a case as clear-cut as tobacco still has grey areas. People still smoke despite the fact that the risks are now well known. If someone knows the risks and still chooses to take them on because they'd rather have a nicotine buzz than a long buzz-free life, who are you and I to tell them that they are wrong? Because once you take that step it's a very slippery slope from there to not allowing anyone to take any risks at all.