I have no association with these places, but I cannot resist the challenge of a provocative thread.
I don't know that they are / should be on the main tourists roads as I have only noticed one the whole time I have been in Cyprus, and that was pointed out to me some 20 years ago ... still going, by the looks of it, although it could do with a lick of paint and some new light bulbs.
They obviously serve a purpose or two.
Clearly they attract customers; and from my point of view, wishing to live-and-let-live, it keeps retrogrades off the streets and away form other establishments...
They would probably say the same thing about Laura Ashley shops ... keeps us floral-print, blue-stocking types off the pavements.
(P.S. Does anyone know where there might be a Laura Ashley shop here in Cyprus
..... as I am fed up pounding the pavements. )