Let's consider this quote "All human life, we may say, consists solely of these two activities: (1) bringing one’s activities into harmony with conscience, or (2) hiding from oneself the indications of conscience in order to be able to continue to live as before." Note that he has defined all of life as two points about "one" and "oneself". This is why I and I assume many others roll their eyes. Because Tolstoy, and…
No, alcohol exists for a very simple reason: Clean and sanitary beverage.
Lest we forget, alcohol is alcohol. It is by its very nature sanitary and safe to drink, which is why humanity has long consumed it. Safe and clean drinking water in abundance is a fairly modern phenomenon, and it's still only available in a small part of the world at large.
Given that, alcohol satisfies both aforementioned activities.
Producing and consuming alcohol is harmonious with conscience, that is the desire to "do right" both for yourself and your peers, because beverages that are safe to drink is critically important to yourself and everyone.
It is also denying the brutal reality of the world we live in, that is to say we hide from our desire to "do right" because producing and consuming alcohol is easier than ensuring clean and safe drinking water while achieving the same practical goal.
Alcohol obviously has its problems, but they are far better than ones incurred from drinking foul water.