It's easy to criticise the government, but can't be an easy problem for them to solve. There's a reason why each successive government leaves things as they are.
There's certainly a case for it, but I've never studied the reality of it.
Yes, that is a bad thing. If impressionable people think it's fine to try anything, most of the drugs they try will be untested, some will be mixed, many will be addictive - even the ones that aren't supposed to be, where the dealer has added something for some repeat custom. Who knows what long term effects there will be on that persons mental health. It would be good to have more independant studies with the aim of legalising some drugs, allowing them to be produced and supplied through accountable outlets. If these studies can show what is and isn't harmful, and educate people, it would be great if people had a choice of drugs without turning to a black market. But I don't suppose it's that easy. It must be very difficult to know the long term effects of mind altering drugs (that would count for alcohol too, but there's a lot more information available).
Like I say though, it's not that obvious what is good and bad about all drugs.
Again not easy, but it probably is worth the government researching options.
The big problem with the government with regards to these issues is that they have been presented with the facts from numerous studies, and recommended by the experts in the field about how drugs should be classified based on their harm to people. The result? The government sacked the head of the group from his voluntary job because they didn't like what his results said, as it goes against their 'all drugs are bad and should be illegal - apart from those that make us tax' policy. Regardless of the fact that he is a professor in medical sciences and highly respected throughout academia.
Leaving things as they are doesn't seem to have solved many drug problems though has it?