Even if you had permits and taxes for peddling hard drugs on street corners, you'd still have criminals operating permit-less black markets, if for no other reason than tax evasion. Your logic has already been applied to guns...we are required to jump through several unnecessary hoops just to get a permit to buy a gun...and yet criminals fail to abide by any of those restrictions.
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I am sure I didn't suggest that there would be peddling of drugs on street corners, I said that would not be legal. Excessive taxation is indistinguishable from prohibition. Taxes have to be reasonable, you don't see most products on the black market because they have reasonable taxes and avoiding them is a bigger risk than just paying them. We see this effect in states where pot is legal but they have absurd taxes that make it so people just continue to go to the same tax free dealer they went to before. If the taxes were reasonable they would not have better prices. My logic has not at all been applied to guns, that's called a straw man argument. If you applied my logic to guns there would be no black market for them either, the black market for guns is created by prohibiting certain people from being allowed to buy them legally, I am sure I never suggested any such prohibitions.