I lean toward a passive illegality on drugs themselves. Keep them illegal per se, but enforcement needs heavily reformed.
First and foremost the fed's power needs to be seriously curtailed. The most offensive practice, IMHO, is the seizing of cash from persons with large ammounts of paper money on them under the presumption that it must be drug money but without any demonstrated proof. It's nothing more than state sanctioned theft.
I believe persons who commit criminal acts under the influence of drugs should be hit with the hardest sentences available. Persons who commit crimes and are found in possession of drugs while doing so should have an additional count added to their sentence. Persons who commit crimes as a means of obtaining possession of drugs should similarly have an additional count added to their sentence. Persons who simply possess small ammounts drugs (i.e. found in their homes) should recieve a minor citation where applicable with penalties gradually increasing for repeat offenses, but the first count should not be some ridiculous high level felony 10 year jail sentence for small ammount possession.
I also agree - no government health care handouts for drug addicts. No needle distributions etc. If a person chooses to use drugs, he alone is responsible for the consequences on his health.
And as you said, dump unsubstantiated search and seizures, wiretaps, federal spying etc.
Make it legal to possess and sell. Any other situation leads to more government powers in the name of fighting crime. But, as always, the individual bears the responsiblity of their actions, not society.