The government admitted to the campaign on a documentary I watched recently.
Part of it was campaign and part was true, but the true parts have very little relevancy in today's society.
The propaganda came in in declaring that moonshine was inherently difficult to safely make. It's not. Take just about any weaker alcoholic liquid (while mash is preferred, beer or wine work just FINE for this and are both legal to make and consume at home) and heat it to between the boiling point of methanol and ethanol (ie, between 65 degrees and 78 degrees
Celsius). Have a large straight copper column coming from the top of your pot upwards a bit, and then have a copper tube coiled up running down from that to condense the vapor into a collecting container.
Anything that drips off between 65 and 78 degrees is methanol (or something equally unwanted) and to be poured off (though unless you pour stuff in it or SERIOUSLY mistreat the mix there is often very little, if any, methanol in your liquid to be distilled).
After you collect and pour off that stuff, heat the mix to between 78 degrees (the boiling point of ethanol - drinking alcohol) and 100 degrees (the boiling point of water). Whatever drips out is pure ethanol. Cut that with water to get your desired potency (40% alcohol/60% water is usually a good balance) and you've got moonshine. Not hard at all, and can literally be done with a crockpot or pressure cooker and $15 worth of stuff from any hardware store.
(No, I've not done this myself, but both my grandfathers were 'shiners.)
The only reason there was bad stuff going around way back in the day was people doing incredibly stupid stuff like pouring chemicals into the mix to "make it stronger" or doing things like using car radiators as condensers. Frankly anyone doing something that stupid is bound to kill themselves some other way anyways - don't randomly select moonshine to outlaw and punish the rest of us.
I suspect though that taxes (or the lack thereof) has far more of an impact on keeping home distillation illegal than any safety concerns.