Actually, after the U.S. ended alcohol prohibition virtually all of the organizations devoted to booze either went legit or drastically shrank in size and scope. We would've been better off without alcohol prohibition in the first place, but ending it was certainly a net win.
If you're interested in the history and parallels of alcohol prohibition to today's drug prohibition, Daniel Okrent's Last Call: The Rise and Fall of Prohibition is pretty good: http://www.amazon.com/Last-Call-Rise-Fall-Prohibition/dp/074... .
It's not impossible that the problem would just poof go away, but it seems a poor choice to bet on it. Again, that doesn't mean that legalization isn't the place to start!
- has no land, territory, or people that we can lay siege to. in fact, their civilian population is our civilian population!
- has more military funding than we do
- as a result, they have an endless supply of soldiers for all levels of their command hierarchy
- has less oversight requirements than our military (effectively zero)
- has no need for popular support
- has no need for large infrastructure, facilities, or anything really. if you take away some building of theirs with soldiers, vehicles and drugs, they will buy 10 more to replace what you took. they can continue to do this because for every dollar that you produce, as the state, to fund your war, they produce 3.
so you're fighting an insurgent war against everyone and they have more money / resources than you do. and you expect to win? hey, maybe if we took away their ability to make money and recruit people, then this starts to make sense...
All of this to say, we have a problem we need to deal with. An important part of that is to stop making the problem worse, but then we still need to fix it - something like this could be valuable to that end.