As a seller, I feel the seller of your dresses has an obligation to describe her items to the best of her ability and it should be 100% accurate.
A brand new dress as the seller described would not have a smoke smell and if any smell it should be a brand new smell.
As a buyer you bid on something that you were told was new. You deserve to get what you bid on. You should not settle for something that your not 100% satisfied with. If you settle it will bug you, you will wish you had filed a report and returned the item. I settled a long time ago on an item and when I would see the item, I wished that I would have filed a report and returned it as it wasn't what I had bought based on their description.
As a seller when I list clothing, I always stress that the item comes from a smoke free environment and when I listed it as new, it smells like new.
Shame on that seller for not disclosing that the item doesn't come from a smoke free environment.
There is nothing like wearing a smoke smelled item, you never fully get the smell out and it will eventually make you nauseous when you wear it. I never buy clothing here without reading that the item is coming from a smoke free home. If it isn't stated in their description, I would ask.
File the report not as described and eBay will side with you. You deserve what you paid for and you should be happy with the purchase.
Not all sellers are like the one you had! Most of us experienced sellers here would not treat you like this, we would have accurate descriptions, we would not post smelly clothes, it is more important to us for the buyer to be happy and to have a great buying experience and hopefully get you as a a repeat customer!
