Drugs are practically legal in Canada. What you see happening is these druggies killing each other over the crumbs of the trade. If you think legalizing drugs will make the world a better place, you're dead wrong. All you end up with is a useless, dependant population. Welfare, Winnipeg's largest employer. At least in the north end and "core area" it is.
1) Drugs are not "practically legal" in Canada. Possession of marijuana is not being actively prosecuted these days. Production and distribution are not punished as severely as in the US, but still fairly strongly. Possession, nevermind trafficking, of all the other usual illegal drugs (coke, heroin, meth, ecstasy, etc) remains illegal in Canada and will be prosecuted.
2) Despite the above, and despite the US's ongoing war on drugs, harsh penalties for MJ possession, and harsher penalties than Canada for most other drug crimes, the rates of drug use and addiction are higher in the US than in Canada.
I don't really support the legalization of all drugs, but it's difficult to see offhand how it could really make things much worse. Yes, it would undoubtedly result in somewhat higher rates of usage, but OTOH it would eliminate the black market drug trade, the main source of revenue for street gangs.