I think that it's not about the society being dysfunctional per se, but rather unsuited to the current situation. There's still a lot of communist-era mentality even in Poland, let alone Russia. The very mentality that now doesn't work, or at least not well. Decline of Russian economy and society are linked, but I think that it's the economy that went first. In Russia, the default way of coping with hard times (or celebrating good times, for that matter) is to get drunk, preferably with friends. Free market only introduced more varieties of drugs, if that (Russian Mafia had them covered back in Soviet times, too). Generally, it's not even an issue with how much they drink, but how they drink. Countries listed in the article as having more alcohol consumption per capita have a different way of drinking. They usually drink beer (Czechs and Hungarians are particularly famous for that) and often have it with their meals, much like French or Italians drink wine. Even "social drinking" of beer, also prevalent, isn't too bad, as it has a low alcohol content, meaning alcohol intake tends to be more spread-out. Russians, on the other hand, "socially drink" vodka and other high-proof alcohols. Often to deliberately get sloshed, if things are bad. This often ends in alcohol poisoning, drunken stupidity (especially since in Russia, being drunk is often not considered a big deal) and other such things.
The problem with the Russians is that, just like the West often can't understand the way Russians think, Russians rarely understand Westerners. Doing the same, but in a Russian way often results in a disaster, and it's, as you said, hard to understands why other "Slavic" countries would throw in their lot with the West, as well as why it works out for them so well. Baltic states had a lot of contact with Germany (dating back to medieval Hansa) Sweden and Denmark via the sea, and as such, understand the West a lot better than Russians do.