Yeah wow. They are really good at making their game even worse. In D:OS1 smoke was a sight blockade, wich prevented ranged attacks and forced the enemie to come closer. It was a tactical way to influence the battlefield. Now, thanks to bless it is even more game breaking than the sneak-abuse.
There is even a skill for it, even though your method seems to be much cheaper:
http://divinityoriginalsin2.wiki.fextralife.com/Blessed+Smoke+Cloud