The combination, which is the point of the comment above. Legalization may be fine in places where people have other support factors that make them less likely to destroy their lives with drugs and alcohol, but in areas without those protective forces, it's good that there are some controls (or at least many of the people who live there think so).
At that point it becomes important to ask (1) how much damage does the illegalization itself do; (2) how much harm does the limited access actually prevent; and (3) how much damage alcohol does, and what the tradeoff is.
If you’re going to make a harm reduction argument, you need to do your best to fully account for all the harms in play.