We do not know if LSD was in fact the catalyst. We don’t know if the people who got ruined after taking a single tab of LSD actually took LSD or some research chemical (which are quite commonly sold off as LSD).
>but the reality is that such a drug is dangerous and absolutely does hurt people.
With this reasoning, skydiving, base jumping, and even the act of simply driving a car should should also be illegal. We let people do far more dangerous things, yet keep them legal. There is another reason LSD & most psychedelics are illegal. What that is, I don't know.
We can make random guesses all day about what’s a good outcome but how about we leave it to medical researchers to actually figure out what’s safe and beneficial?
Only in certain contexts (ie. some instances of interstate commerce).
Even if it's true that someone has some kind of latent / dormant condition that is ultimately triggered by the LSD, then the act of taking the LSD itself was the catalyst, and the person would have been far better off not ever having taken the drug.
The drug is illegal, and the argument growing up was that the "government was suppressing free thought" or whatever nonsense was being pushed, but the reality is that such a drug is dangerous and absolutely does hurt people. Whether connected to a predisposition of mental illness or not, it's not a hard connection and people should be extra cautious when considering whether to engage in such behavior.