You serious think that taking away the stream of income that has put trillions of usd in the hands of cartels / organized crime won't have a huge impact?
I think it is necessary — even if not sufficient — to end the war on drugs. The only exception I’m willing to make is proper labeling and safe storage conditions. It should ought to remain unlawful to distribute drugs without proper labeling. We will need to come up with labeling standards.
Wouldn't they be more likely to just enter the market as legal participants? Cartels kill and do heinous things to their competitors because they can't take them to court and sue them and get an injunction to stop bad behavior.
That's not what happened with Prohibition. Crime syndicates providing black-market alcohol didn't just set up as legitimate alcohol vendors, they moved into unrelated markets like controlling labor unions.
Note that labor unions were a legitimate type of enterprise, but organized crime ran them illegitimately anyway. The willingness to break the law is their competitive advantage; it would make no sense to give it up.