I suppose that all depends on what you consider effective and what you want to see happen. If you want to see our country go bankrupt, then I certainly can see why you would not want Ron Paul. If you want a President that is effective at delivering more war and more nany state, then you are correct that Ron Paul would not be very effective at this.
My question to you would be, what do you want your next President to deliver?
An effective president needs the support of Congress. I don't think Paul would have that support for his current platform.
My ideal candidate would have a cautious foreign policy and do everything possible to avoid new wars, but not instantly pull out of Iraq and definitely not pull out of places like South Korea. I think the UN is flawed but ultimately a force for good, so I wouldn't want to disengage from it (same with NATO).
Economically, I don't mind the fed but would like to see additional oversight and accountability. Spending, especially on earmarks, should be curtailed.
Regarding privacy, I think that wiretap warrants should be harder not easier to get, and any person who engages in illegal wiretapping should be prosecuted. If an agency like the FBI allows its agents to run illegal wiretaps, the head of the agency should be fired and prosecuted.
I also think Gitmo should be closed and "intense" interrogation techniques like waterboarding should be clearly classified as torture. Terrorist suspects should be given swift and fair trials.
The biggest area where I break with Paul is the role of the federal government. I think departments like Energy, Education, the FDA, CIA, FBI, etc. are essential and should stay. My impression of state governments is that they are by and large inefficient, corrupt, and much less qualified to govern that the federal level is. I really don't see the appeal of dramatically increased states' rights.
Regarding drugs, I'd like to see marijuana legalized, but not other drugs. At the very least, medical marijuana should be allowed.