I knew someone would say this. Full legalization for narcotics for drugs such as; heroin, methamphetamine and even "peaceful" psychedelics will spawn a whole host of problems our society isn't ready to deal with, including; psychiatric, welfare, substance abuse and worst case, the above 1984 situation you mentioned. It's why opiates were partly banned (besides the racist overtones) in the earlier part of the 20th century. If you want to see a historical example, look at China's opium crisis in the 19th century.
Full legalization is not the correct path, full decriminalization, subjective taxing, quality assessment and proper counseling and support is.