I agree to a point. However I think that decriminalisation fails to recognise that drug courts are quite effective at rehabilitation. It's important to minimise the effects of imprisonment and criminal record for drug offences that way individuals always have an opportunity to higher income careers. (Although from my experience, competitive jobs markets ignore drug felonies and sometimes even violent felonies). The solution isn't to completely defang the state and just hope that people decide to quit drugs while dealing with all the problems they cause along the way. States need to have some ability to pressure individuals to rehabilitation.

The latter part of your comment is just leftist conspiracism. The percentage of false arrests is heavily out weighed by guilty parties getting away. You can easily find this by both reading papers on it or just going to your local homeless shelter and talking to people. An encounter with police is much more likely to involve you getting away with a crime than falsely accused.

Prison labor is also not profitable, the majority of prisons are publicly run. The idea that high incarceration rates are because the state somehow makes money by enslaving people is completely false.