Similarly, regulated drug dens (like regulated brothels) are a perfectly tennable idea. There are middle ground solutions between "ban everything!" and "sell it everywhere!"
It's surprisingly hard to OD with a clean supply, measured dosing, and emergency services on site. I don't think that clean, supervised drug use is actually any more dangerous than say... skydiving or bungee-jumping.
(It's actually hard to fatally OD with just one vaguely sober person an nasal naloxone, but that's more specific to opiates.)