The War on Drugs has involved arresting and imprisoning a lot of people, because a lot of people really want drugs. Once the soft enforcement mechanisms (reprimands, misdemeanors, fines of legitimate businesses) fail, then if you really want to suppress the act, you have to ramp up the level of force. The reason that fewer people are imprisoned under FDA rulings is, I would say, because the FDA is more lenient, and because the things it bans are far more niche and less desired. You can have effective, or you can have gentle, but you cannot have both.
I do believe that you can tell store fronts not to market literal gasoline as a restorative tonic without automatically escalating to violent raids. As far as I can tell, a rule against marketing gasoline as a restorative falls afoul of the standard you declare in your first sentence. People aren't very comfortable shrugging and not doing anything about perceived problems (illicit distribution of the restorative gasoline), but we'd be better off if we did that more often.
(I do understand that the example is ridiculous because there is no demand for a restorative gasoline tonic amongst competent adults, it's just that there is ample evidence that people want some assurances about safety. A less ridiculous example would be requiring people buying cocaine to go through some sort of educational material that made the risk of forming a habit clear, and regulating the manufacture of the cocaine that is eventually sold so that it is not adulterated)
If someone was convinced that gasoline would cure their hair loss, they couldn't get it through a pharmacy, but they could still get it from someone making no such promises. If someone was convinced that cocaine would cure their hair loss, they can't get it any way, any how - even just as something labelled "dangerous goods, do not consume". That's the prohibitive authority that leads to raids and cartel warfare. And that's the power that many people still support the FDA/DEA/government having, and which I am pointing out is the root of the problems with the drug war.
How many people are in prison for violating FDA rulings? I'm sure there are a few, but policing egregious behavior is probably a step that a reasonable society takes out onto that slippery slope of having rules about a thing.