To give one example, Amsterdam used to have a huge heroin addiction problem, with associated crime and high death rates amongst addicts.
It is now treated as a health rather than a policing problem. Safe injecting rooms, methadone replacement programs, etc. As a result, the average age of heroin addicts in NL is now over 40, because young people aren't being addicted, and 'established' addicts are able to manage their condition for years, rather than die early from overdoses.
For more info on the Dutch approach to drugs of all kinds, this 21-page PDF has good background plus statistical comparisons both over the last 15 years and with other European countries:
http://www.emcdda.europa.eu/system/files/publications/4512/T...
It will improve the quality of life for the addicts as well as the city climate, as to whether this is worth the extra costs compared to a state-supplied drug stash is up to society to decide.
Some people are incapable of looking after themselves, or fall into addiction after horrible experiences, and leaving these people to stew in their own juices rather than intervene is inhumane. We do after all section people that are a risk to themselves or others, so this is not without precedent.
A slim majority has recognized that consent and autonomy are important rights and chooses to deal with the consequences of maximizing them.