I agree, there would still be a potential for a black market for harder drugs, but even if the black market was there, it would be no where as lucrative as it is now. If it is no longer as lucrative then the crimes associated with it will also go down.
You have to look at it this way: Drug dealers aren't evil, they are just business men. They don't kill and murder and bribe and what-not just for the hell of it. They do it because it is economically beneficial. They kill because it significantly increases their profit margins. To use your example, people who peddle illegal copies of Windows, do they kill people? No. Why? Is it because windows pirates have more ethics? No. Its because killing people in the illegal software business does not significantly increase profit margins. If we make it so that committing these types of crimes no longer produces higher profit margins, then they will no longer commit them. One way to do this is through legalization. Just like ending prohibition ended violence related to bootlegging. This, coupled with more rehab and treatment programs will curtail the demand for hard drugs thus making the entire business less profitable and will make the "criminal element" abandon the violent business of illegal drug traficking.
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