We just returned a couple of weeks ago and had a second floor room. I am highly sensitive to smoke, in fact it gives me migraines and asked for a first floor room. I wanted to be as far away from the third floor(smoking) as possible. They did not have a first floor available and we were given a second floor room. It worked out just fine. No smoke smell at all. I was very happy with it. As for the lack of a balcony, it didn't really bother us. I asked the staff if they would be putting in balconies in the second floor when they do the Hawaii building over next year, but they said that no, the building could not structually hold balconies. When the Poly was originally built the balconies were ommited on the second floor rooms because in Walt's design he wanted accuracy and in Hawaii they think it's bad luck for a balcony to be on a second floor room. This is what a cast member told us. He said that Disney realized their mistake, as everyone WANTED balconies, so the later buildings were built with them. All three CMS who happened to be at the concierge desks at the time nodded and said that it is a nightmare for them because a lot of people don't want the second floor and they were hoping that when Hawaii was done over they would put them it. WOW, I guess I wrote more than you wanted to know!! LOL!! Bascially we had no problems with the second floor. My kids and hubby did go up to the third floor and said that the smoke smell was terrible in the hallway, just for info.
Have a Wonderful Trip!!!