The problem with containment to a smaller society is that it simply doesn't work. Witness the days of prohibition. The illegal use of alcohol was not controlled, it only opened up the way for bootleggers and speak-easy's. In the process we got the mob to distribute drugs, taking the place of the modern day drug deal and drug king pin.
Education of the masses hasn't worked either, nor has "just say no". What has happened instead, is that those who would use drugs are exposed to the ads, education against drugs, ect. of all the horrors of drug use, whatever the most catchy slogan of the day is. They wind up out of curiosity trying it to see what is so bad about it. What they find is that the gateway drugs, like pot ain't so bad, certainly not what it was made up to be. So the only thing that comes to mind to the initial user is that they lied in telling and presenting these drugs as being the scourge of mankind. Therefore if these are not that bad, then surely the rest aren't.
It also breeds contempt for the law. If you must break the law to use this then what is another step along the way? The next thing is, it is ok not to pay taxes, it is ok to "borrow" your neighbors lawn mower to sell for drugs, (he isn't using it anyway, when you took it) and other behaviours that law says is not to be done are suspect. Law officers become "the pigs" as they are upholding unpopular laws and lose respect of the populace in the process.
You have the second most largest business in the US, in the black market. (if I remember my figures correctly) that should give you some key as to just how unpopular the current laws are and what Joe Public is willing to do to get them. If that money remained within the US, tell me our economy would not be better? Tell me our taxes would not be less? Tell me our money would be worth less (As the government must print more to replace that which left the country, devaluing what remains).
It is far easier to make a clinic where you could buy legal drugs. Reasons? Users can be kept watch on to general health and condition as they come to purchase said drugs. Help may be offered to those that will take it. If they won't take it, crack babies aren't going to stop. Whether you pay now or later isn't the issue. Because you are already paying. The user will find what they desire, come hell or high water. It doesn't stop it now. So the advent of making drugs legal holds no water as far as proliferation goes. Studies show that after the initial legalization in The Netherlands that drug use decreased to a certain level and then remained there. In otherwords, no matter what the government rules, a precentage are going to do drugs. You will not stop it but you can control it to a minor extent.
You need only look around your home town to see that it is neither controlled nor is the drug war in anyway a success...