I think you're talking about the psuedo-middle class and heavily westernised orbits of Bangkok and similar cities.
Other parts of the country (and swathes of Bangkok) aren't anywhere near as developed as that. Take a train out of Bangkok and experience from the comfort of your air conditioned train seat how the other four fifths live.
But nor is it a Banana Republic. It's similar to a lot of other Asian countries in that the trappings of a modern western lifestyle are in abundance, but the whole infrastructure buidling era has been bypassed in many areas, even though it had a big infrastructure boost a few years ago when Uncle Sam was in town. You can have your broadband and your 3G phone there, but don't expect civic amenities and utilities. Seen many ramshackle shacks with satellite dishes in my time. The decent infrastructure that was put in place a few decades ago is crumbling in many areas. Sounds a bit like Britain dunnit.
And yes - I have lived and worked there a fair bit over the years. Up in the north, in the middle and down in the south. It's a cracking place and I wouldn't change a lot of it for the world, but it's got big problems and the biggest one is the turbulent political scene (nationally and locally). It's hard to see how they'll ever have harmony, because anarchy seems to pervade a certain section of every generation.
And given that it's a nation built on exports, I fear for the future of Thailand. The economy there is on the brink and I don't think you'll see any Tiger affected more by the global downturn than Thailand.
But yeah, apparently the mission to re-take the airport is on. Interesting times.