I don't believe they propose an amoral anarchy, rather, letting morals be decided by the people as a social issue rather than enforced by the government as a legal issue. Society will still look down upon the heroin junkie, whether it's legal or not. We do it with alcoholics now.
Excuse me? What is representative government other than the people making the laws by which they agree to be governed? If people decide on a moral issue, then it is perfectly appropriate in a self-governing society for those people to enact that moral issue into law.
Our government has degenerated into much of what it is today, not because of out of an out of control congress, but because of the worship of the oligarchy that is the Judiciary.