Well, not sure about other states, but here in California the legalization has caused an explosion in illegal grows. One county up North has requested a federal disaster status because of how much harm is being done to the wilds. It's like a mob rushing the only exit and everyone who tries to control it is just gonna get stomped.
I don't see the feds backing off, I don't see banking taking on all that cash and I don't see the illegal growers viewing legalization other than a way to ruse their own operations for laundering their pot. Besides, everyone has the right to grow 6 plants for their own use. I would think a great business model would be to either sell the plants to individuals or to sell a kit so folks could try growing their own. A lot of people are curious about pot, but wouldn't want to get caught buying in a public place.
I agree to disagree on almost all of your points. In the past, California has not had a vested interest in seriously cracking down on the illegal growers. Now that legal growing will generate millions in tax dollars, ever increasing legal resources will be devoted to shutting them down. Also, there will be a sales trail from the legal pot shop to those who provide their product. A simple crack-down on the shops (as in taking away licenses) combined with huge legal growing operations will render most of illegal crops useless.
The Feds have already backed-off and legalized marijuana becomes more popular across the nation every day. Laws change when sufficient public pressure mounts to change them; we are at that tipping point, now, with marijuana laws.
Banks and sellers, would love to stop using cash, but that won't happen until legalization occurs. In the meantime, I promise you that banks are in fact taking the cash generated in states where it is legal. With only a handful of states involved and it still being "illegal" on the Fed side, the marijuana industry is already generating billions of $$ in revenue. Eliminate the obstacles, discussed and it could easily surpass the alcohol industry for profits.
As far as growing your own, I brew my own beer at home, but most do not have the time or energy (heck, I still buy from stores). Growing pot at home should have little effect on the broader market.
I encourage you to look at the states that have already legalized. In those states, the stigma of buying pot is quickly being erased and the quality of the product is far different than getting a baggie from your shady friend back in high school. Lastly, despite the high taxes, prices are not keeping buyers away. I do not know why California would break this clear and established pattern.
