IIRC, they are pretty sure that schizophrenia is a combination of genetics and situation. I'd not say that we need to be guided and supervised (as this would just keep the black market around), but rather better informed and more research on mental disorders. The vast majority of folks that do LSD don't wind up with schizophrenia, and IIRC you have to be predisposed to schizophrenia to develop it after LSD.
I'll note that it is pretty rare to develop schizophrenia later in life as well.
Source: Ex developed schizo-affective disorder, later being diagnosed as schizophrenia. He was in his early 20's when diagnosed, but showed symptoms well before that I could only recognize in hindsight. I've personally done LSD more than 35 times, but completely unsure of how many times that is and that doesn't include other hallucinogens I've done. I, personally, do not have schizophrenia and am 42.
Or perhaps being a latent schizophrenic, he was drawn to LSD/drugs in general. According to a study done in 2006[0] 90% of schizophrenics in the US used tobacco products in 2006, while only 20% of non-schizophrenic people did.
How do you explain this? It’s either “schizophrenic people use drugs at a higher rate” or “tobacco causes schizophrenia”. I’d bet heavily on the former.