Your logic is faulty. Drugs are money makers because people buy them, seems demand is high given what I understand that crap costs. They are illegal because they harm society. Any further argument is moot.
No, his logic is not faulty. Legalized drugs would cost a lot less, and could be run by world class companies. The profit margins on illicit drugs today run in 95%+ (ie 20x+ markup). No legal item has that kind of markup. It’s the same reason you had gangs form during alcohol prohibition. Additional, legalized drugs would reduce crime as there would be no profit for gangs as they could never beat “Budweiser” selling pot at the ABC store or whatever. We’d also save over $50 billion a year in taxes, plus collect probably $25-50 billion a year in taxes.