Insite can almost be seen as a medical clinic. A hospital OR is a "supervised drug injection site" where you can be legally knocked out with propofol and fentanyl.

Yes, in the same sense that a street drug user could almost be seen as an amateur anaesthesiologist subjecting themselves to a controlled dosage of opioids for medical purposes. But despite that, street drug use and supervised injection at Insite would both have been criminal offenses if not for changes and exemptions made by legal system to allow them. That's precisely what "decriminalization" is, and a large part of this is the idea that drug abuse should be seen as a medical matter rather than a criminal one.

medical clinic is an interesting choice of words.

One might think there is a licensed medical doctor prescribing hard drugs without fear of prosecution, free from law enforcement.

Chinatown residents would certainly disagree whether it has been beneficial for them. Yaletown residents certainly disagree