I am firmly for the pro-drug agenda. Legalize all of it.
Every argument you make sounds to me like the arguments made by the anti-gunners - return to the Wild West, blood in the streets as cartels take over, etc.
The difference between us and them is, this experiment has already been done before, and we have the results. They are not good for your side.
Chests of Opium imported into China. 
And in 2012, 1,316,562,729 people are addicted to government.
China's population was 400M in 1900.* That's an addiction rate of 22.5%. Drugs were also legal in the US in 1900. The DEA sez the addiction rate to either opium or cocaine was 0.5%:
By 1900, about one American in 200 was either a cocaine or opium addict.
http://www.usdoj.gov/dea/demand/speakout/06so.htm
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Fast forward to 2000:
...the Office of National Drug Control Policy pegs the current number of cocaine addicts at around 3.6 million people.
http://www.thecyn.com/cocaine-rehab/cocaine-addiction-united-states.html
"For example, numbers like heroin addiction. You can find numbers that go from 255,000 up to the one I'm currently using, 980,000, if I remember the last time we updated it, and those are all valid scientific studies." --Drug Czar Mcaffrey
http://www.pbs.org/wgbh/pages/frontline/shows/drugs/symposium/panelmccaffrey.html
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Adding the ONDCP numbers for cocaine and heroin addiction together yields an addiction rate of about 1.5%. So after a century of increasingly aggressive prohibition, our own government is telling us that addiction has gone from 0.5% in 1900 to 1.5% in 2000. Which historical example is more relevant to the US in 2012, Chinese history from 1900 or American history from 1900?
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* http://www.populstat.info/