Other less liberal governments will simply ban something they consider sinful instead of try to make money off it while letting their populace (who they are supposed to care about) slide into hell (if the thing is truly sinful). Historically this doesn't work so well in the US, but in other places like Singapore it works better.
Not true at all. Conservative governments often desire things like trade protection tariffs. They may ban 'immoral' things rather than merely tax them differently, but they are still very interested in controlling the flow of money.