Sarah Palin just appeared on Fox Business and told her views on marijuana. She is against complete legalization, because this would encourage minors to use drugs.
But she does not see the need for any law enforcement efforts towards people smoking joints in their homes and not harm other people.

This is a very libertarian viewpoint, which goes along with libertarian policies on limited government and the liberties every citizen has.
She probably wants to distance herself quite a bit from her neo-conservative image and also reach out people with libertarian beliefs and maybe even some liberals.

In the second part of her argument, she claims, that drug abuse is just a minor problem in our society and should therefore be treated as such.
I am not sure that it actually is a negligible problem, but she is right on the fact, that cops have a lot more important things to do, than cracking down on pot smokers.