Mexico: Drugs win Drug War?

This is no joke. President Vicente Fox of Mexico is about to sign a bill that would make nearly every drug and narcotic legal in Mexico, giving Mexico the most liberal drug laws in the world. No doubt that this could have a huge impact on both sides of the border. So far, drug war policies have been heavily focused on the supply side of the issue. Could this step towards legalization lead to more focus on the demand side and reduce drug cartel profits? Seems like it could go either way at this point