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You might have to live near your customers, but you don't have to live in exactly the same shitty circumstances. Based on the places they lived, they weren't doing a lot better than the people around them that were working shitty minimum wage jobs.
So we're solely basing it off of what it "looks" like? Don't worry about the $15,000 in the matress they haven't told you about because they don't want to be robbed and loose lips sink ships? Yup, sure thing, you're right, drug dealers are actually poor, officer.
Most of them are, yeah. When you read through this article, you'll note that they're mostly not dealing with end users; they're selling to other people that are selling to end users. Distribution--moving in bulk--is where you're making money.
So back to "doing it wrong." You can sell to them too and mark it up, but you have to at least move a little bit of weight, or you're doing it wrong. Drugs are kinda just a really effective MLM at the end of the day, it's better if you can get a couple guys to flip it for you.