I won't argue iPods, but I'll take a shot at Lottery tickets and cigarettes.
One (humorous) definition of Lottery is "A tax for people who can't do math". In typical (US State) lotteries, not only is winning the big jackpot is a huge longshot (
80 million to 1 for the Powerball), but the payoff is actually very poor. I think typical payout is something like 50% of the fees collected. Vegas slot machines have a much better payout percentage. Based on those two statistics, anyone making an informed decision, should not purchase lottery tickets. People are vulnerable in their greed, their judgment is clouded by fantasies of a huge payout, and they stupidly spend money that they shouldn't. Organizations that run lotteries are preying on the vulnerable.