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Well your logic is good, but you forget about size. If we have one person growing it illegally, skipping the taxes, they have to stay small, out of sight; where as the legal guy, can have a large farm, a large operation which cuts cost, and produces a higher yield. Also, illegally requires expensive lights, and equipment, legally, you can be outside in the sun, it still requires equipment, but not as much.
You will never get rid of a black market completely, there will always be a reason to be under ground... but if we can get more into the real market, it will reduce crime (violent crime) and increase tax revenue.
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