This is a good argument in general but unfortunately it depends on tax structures and other external forces. For instance, cannabis is legal in many states now yet cartels still distribute it at huge profits simply because the taxes are exorbitant and also that there are weird rules about who can buy how much when (example: prior to adult use laws I still purchased cannabis illegally even though I technically could have gotten a medical license because it was so complex to get one). So while I firmly believe the answer is yes, there is still a balancing act that needs to happen.