Your psychosis has most probably nothing to do with neurotoxicity of magic mushrooms, unless you took the 'other' mushrooms which are poisonous like Amanita muscaria. Also you didn't mention which substance(s) you drugged yourself to get there, how pure and strong they were (something legality helps greatly with).

Overall, all pros and cons taken, there is no contest - legalization is the only correct thing to, especially given how past war on drugs panned out. Nobody advocates its the miracle cure, nobody says you should overdose on them 7x a week, or that you should even take them for that matter. Just like nobody advocates to drink themselves to death just because as an adult you can go and buy 10 liters of vodka or absinthe at once.

There is no protection against stupidity, just a hope for cure in form of education and knowledge.