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Well it does fetch some credits. I think the values increase as you level certain skills.
But yes, it's better in my opinion to pick up the weapons and sell them.
The only things that makes it a little better is investing in a few of the skill perks like commerce to raise the credits you can get and deception to make moving contraband around easier.
Contraband is usually worth a fair bit but only about the same as a decent weapon.
If you're passing some just grab it and make a quick trip to the Den/Red Mile/The Key afterwards to ditch it with some other loot. It's no great hassle since nobody has enough creds and you'll likely want to visit several places anyway after a good haul.
I wouldn't bother getting into smuggling. High risk low reward.
There are a couple of exceptions. Vladimir and Noel pay more for the stuff they buy than other merchants do.
I'm going to do a mod where TA merchants pay full price for contraband, if someone doesn't beat me to it.
https://steamcommunity.com/sharedfiles/filedetails/?id=3159117201
https://steamcommunity.com/sharedfiles/filedetails/?id=3159117014
https://steamcommunity.com/sharedfiles/filedetails/?id=3159117064
https://steamcommunity.com/sharedfiles/filedetails/?id=3159117114
If I recall correctly the Dream Home isn't on a world you get scanned at.
But onestly contraband isn't worth the bother. I just jettison it. I get tons of guns/spacesuits/helmets/packs that are all worth just as much if not more credits with none of the hassle and more spots to sell it.