The drugs thing is only Berlin, at least in Germany. Drinking everywhere (though not at all times) is normal in all of Germany AFAICT. It's legal and nobody cares if you still behave.
Drug selling and smoking pot in the public (or even schools) is also not uncommon in other major cities in Germany eg. Hamburg, Frankfurt, Köln, etc. Hamburg has areas near the habour feeling quite extraterritorial in this respect. Munich I don't know; it's a much cleaner place than those other cities. Though drinking beer there and going to the Biergarten is kind of their way of living, and it's certainly a relaxed place with respect to nudity, love affairs, and sex.