It's a very high threshold libertarian argument you're making, so lets jump to the far extreme. Is it okay for the government to ban the private manufacture and possession of nuclear weapons? Weaponized pathogens? How about keeping lions and tigers in a New York apartment? Are you equally as offended by government bans on those things?
The law has to balance. Is the loss of the legitimate uses for 190 proof Everclear outweighed by the harm caused by illegitimate uses?