ok, maybe I'm just clueless but how would a drug smuggler successfully smuggle drugs through my luggage? Even if the drugs made it to the destination city undetected, how would the smuggler get them back out of my bag if we're there waiting at the conveyor? They steal our luggage at gunpoint?

I just can't see it happening.
They used to do it all the time in Kennedy. Basically the way it works is that its a well established organization, with ties in both airports.
Person a hides contraband, after the screening in the baggage room or on the ramp where no one can see them.
They then call there boss or the person on the other end and say its in this location. Person b meets the flight, and in the belly or somewhere else no one can see, takes out the contraband, does whatever with it, and no ones knows what happened except the people involved. Generally even the peoples luggage thats invovled wont notice, unless something is missing, severly moved, or in some cases, something is found.
Now to answer the next question, I can see coming, I used to work for
Virgin Atlantic Cargo, and we handled the cargo for Avianc,Domincana, Lacsa and a few other Latin american airlines, which had daily flights out of Columbia or other Latin American countries. Needless to say Customs had a second home in our wharehouse, and I was on a first name basis with a lot of them. Youd be surprised, at how much is stashed in objects that would otherwise be overlooked, or otherwise be considered sick.
Weve accidently found envelopes with cash, drugs and everything else, inside cargo palattes, because they were shaken during a flight, and the contraband, fell between large boxes, where it couldnt be reached with out tearing the pallate apart on the ramp, which would cause suspicion.