Baba smoking pipe is a sacrilege only when you stay disconnected from Soul.
The universe is designed through evolution of consciousness from worms to Human beings.
We are sent to this world with consciousness to realize our divinity and to participate in expansion of love but after childhood we are conditioned by the society to see ourselves as limited beings.
Whether one is connected or disconnected God is always within every single atom in us, tree, Air, water, rocks and in everything that is visible and invisible.
God is the sustainer of this universe, everything you do, you do it in the domain of God.
Every chillim smoked by humans is done in the domain of God. God is not to be thought as person or force watching us from above. We are within him and whatever we do by our free will good or bad are done only in his domain. God is intelligence that sustains this world without judging anyone.
When God incarnates he chooses to pick some human traits. His choices are divine will and can remain beyond the grasp of human mind.
When Mrs.Saptenkar saw Baba in dream, he lifted his Kafni and urinated in front of her. How can a celibate Sanyasi do it front of woman? Does it not insult her modesty? The fact is God (Sai) is the intelligence behind the working of her uterus and he's clearing out his system (falsely assumed by us as our system) so that there's life generated through Mrs.Saptenkar.
Sai's wants to identify himself with everything and everyone which alone is truth. God (Sai) is the wirepuller of this universe.
We should thank Sai for living his life like one among us and not one above us. Realizing divinity inside looks an attainable target and not a distant dream, which was his mission!