That may not be a bad thing... Work a few blocks over from there and the difference is startling. Having it concentrated in one place where they can keep an eye on it seems to me like it may be a quite effective strategy since it would effectively keep it out of the rest of downtown.
I think it's a fantastic strategy; dealers are going to deal SOMEWHERE because they're meeting a massive demand; might as well keep an eye on it and minimize violence(e.g., South Seattle)
We've gotten somewhat fortunate though, as the violence hasn't ticked upward much at all in that area due to no turf wars cropping up in such a prominent area. I think the city would be a lot harsher on the area if that changed.