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The crime dropped after prohibition because the FBI became a bigger part of preventing crime and rooted out all of the police corruption. Violence in Mexico will continue, unless the government can prevent any cop, judge, or agent from being bought.

Drugs arent special as you say, but they also arent the cause of the violence. Gangs will still be violent and kill each other. It will just be over something new. So yes, we might see a decrease in drug-related violence (im still not convinced of this though), but we will see an increase in violence related to something else being traded on the black market.

I also have a hard time seeing crack or meth being legalized when many people still sue the cigarette companies for giving them cancer. I think tort reform is also needed.