Agreed. If the US legalized the production and distribution of all drugs (a la Portugal http://www.virgin.com/richard-branson/blog/time-to-end-the-w...), a good bit of the american money funding these folks could be taxed and redirected to schools and healthcare in the US. Unfortunately, there's a large swath of americans who would see that as another Obama step towards a communist apocalypse. So it would never get through the Republican House.
Production and distribution of drugs is as illegal (and a crime) as it always was here in Portugal, and we have busts regularly. We only decriminalized (not legalized) the possession of small quantities of drugs for personal use.
The Federal government would be insane to legalize drugs at the federal level even if they wanted to do that. Better to try a test out and see how it goes before doing it across the US. But, with this last election we are going to see if this experiment works by proxy of legalization in several of the states.