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I'd argue to legalize everything including the extremes and price the extremes to barely undercut and drive out any illicit market. It is always better to have control over a legitimate market than it is to have a black market. There is no way to regulate demand and creating market choke points is totally ineffective. So use state run capitalism to make the market uncompetitive and drive out any competition to gain full control. The State as the dealer makes more sense than the State playing wack-a-mole in the middle.
I dunno, I think it's more complicated than that. First off, there are some things that should be prohibited - it's illegal to privately own nuclear weapons, for the most extreme example. Second, many of these truly harmful drugs have tiny markets, and these markets are in fact propped up by other, more conventional drugs being illegal. If heroin were legal, very few if any people would even consider fentanyl, such that fentanyl could be prohibited entirely without having an out of control illegal market.
In some sense, though, we do already have a controlled legitimate market for these prohibited things. Even cannabis, even during the prohibition, had some legal purchase avenues for the purpose of research. Even nuclear, that's manufactured by private businesses with permission from the government. That works for the vast majority of drugs, it only fails with popular, relatively low harm recreational drugs where the law just isn't reasonable against the potential harm.