The indians used the peace pipe for tobacco. They smoked nicotania rustica, a more potent tobacco plant than we smoke today. It was called a peace pipe because smoking it would make you unable to be violent during a meeting because it would be hard to move. It is possible to smoke peyote but the native americans rarely did it. Peyote ceremonies almost always involve eating the peyote.

Also, native americans have the highest incidence of alcohlism of any ethnic group in the USA. So, you can't say they are all drunks, but you can say a disproportionate number of them are.