Of course they will ... that's basic economics.
and that the tax revenues generated will pay for the treatment programs, and all the other social ills to be visited upon us as a society.
Straw men. Nothing in the text you quoted implies any of that ... it doesn't even mention taxes.
Tax free medical marijuana in the states that have legalized its use is more expensive than illegal marijuana available on the streets.
Legal, government-supplied, tax free medical marijuana in Canada is more expensive than illegal marijuana available here.
Legal tax free recreational marijuana available in coffee shops in Amsterdam is more expensive than illegal marijuana available here.
Other than your libertarian "theory", what makes you think that legal, regulated, and taxed marijuana will be cheaper than it is today? And what makes you think our society wants it to be cheaper?