Why not just "terlalu"? Must we put "banyak" so that it is clear we are talking about the AMOUNT of smoke?
banyak = a lot, much, many
terlalu = too
terlalu banyak = too much
If you leave out "banyak", then you're saying something like :
"There is too smoke ...."
That doesn't make sense.
You could use keterlaluan
Asap dari dapur restoran itu keterlaluan= The smoke from that restaurant's kitchen is too much.
But keterlaluan is a little more extreme than too much and has other uses.