Regarding the drugs thing. In game items limit the selection of narcotic substances to I believe 12 items. The Amarr Empire developed and produces two of those; Vitoc and Blue Paradise. So from the limited cross section of drugs we have available in game, The Empire produces 1/6th.
That said, we get that some people don't like the pirate factions. I don't think this discussion is trying to determine which if any are good, it's to discuss to possible feasibility of them becoming sovereign entities. My position is that any of the factions large enough to hold a section of space permanently, to develop that space and able to project military force against their opponents, could become a sovereign entity. It's unlikely though, precisely because of the reasons Bloodbird and others have listed.