The abolishment of the FDA seems like a pretty drastic measure by any standard.
However effective drug legislation really -is not about this at all-. As you alluded to in your second point, it should be part of the broader system of minimizing the damage to society. Drugs are harmful -to society- when the criminal element is the sole distributor, when quality and dosages are completely uncontrollable, and price and availability of the addictive ish are unpredictable. Thus it seems the only way to quell the social damage of drug use of for the government to not only decriminalize everything, but to also ensure drugs are given away by community centers with specialized staff.