Here is my reasoning.... Why would someone rat on the dealer if they got busted? You can't get busted for something thats legal. The only way to get caught would be to literally have a sale interrupted.
It would allow the market to regulate itself, and stop companies that make a mockery of the weed industry by force feeding us bullshit. Look at tobacco... Anyone can grow it, its a plant.... But go ahead and try to start a cigg company and see how difficult the corporate goons have made it. Id rather see herb be freely given and available for all than allow scumbags to turn it in to a cash crop and lobby to make it harder for others to succeed. Food, water, and medicine should be available for all.
Don't mind uncle buck.... His communist and socialist ideologies make it hard for him to defend his position without resorting to just bashing anyone he disagrees with rather than debating like a normal person or just agreeing that there is more than one way of thinking.
I don't mind Uncle Buck, I understand he's institutionalized and since they've taken his crayons away and don't allow gerbils he gets very bored. Besides, I know he likes me and just wants my attention. Thank you for the heads up though.
Now onto your comment.
People "cooperate" with police for a variety of reasons, fear, promise of a more lenient sentence, revenge, maybe the person sold to IS a cop. To say nobody would ever be punished for something that they could be punished for is like asking Uncle Buck to walk by a freshly washed floor without leaving his calling card.
Also, you are 100% wrong on how a truly free market is regulated. The existence of a legislatively included prohibition (no sales) has already ensured that a truly free market CAN'T exist.
I understand you don't want the "big boys" to ruin it for the small time growers, but what you are asking for is to make a form of prohibition (no selling) somehow work to ensure there is a free market, which is oxymoronic. A good bit of the regulation that usually occurs in a free market is enabled by the unimpeded relationship between a willing set of sellers and buyers. By artificially restricting the potential supply, you artificially stifle what the real price would be.
In other words, the plan you are endorsing hurts the consumer, and uses prohibition to do it.
The root of the problem IS prohibition, it can't be solved by selectively applying prohibition. That's just using force to reassign who gets the BENEFITS of prohibition.
A corporation is a government construct, so is prohibition, careful what you wish for.