2 oz of pot, bags and postage scales? It does sound like he was dealing a bit, but not exactly big time. Hardly seems to justify a no-knock shoot first and ask questions later type of raid, though.
One of the method is the compartmentalizing of the sale.
The distributors only keep a minimal amount at the actual point of sale, a secondary person couriers to point of sale when the supply runs low.
It is no different than a dealers standing on the street one holding the cash, the other holding the supply.
I STRONGLY suspect the family knew full well what is going on and the "outrage" is to foist a police brutality lawsuit.