Thai national here, and as a fellow bootstrapper I would have to agree with most of the points of the OP. The reason why I left my well-paid job in Singapore and come back to Thailand to bootstrap my startup is due to the much lower cost of living and un-tapped talent pool.

I'd like to add that the quoted figure of $1,000 USD a month is rather high. Most Thais can get by with $500 USD. That is the current starting salary for undergraduates. Now, keep in mind that if you are a foreigner, there will definitely be a surcharge since it is expected that you are able to afford more. As a local, I can cheaply rent an apartment outside of Bangkok (granted without a pool) for $100-150 USD a month. If you include utilities, phone, and internet you might need around $250-$350 USD, and you will get air conditioning.

EDIT: As for food, his mentioned price of 40 Baht for a bow of chicken rice which has now supposedly increased by 25%. It feels slightly over priced to me, but not by much. The average cost of a bow of food is still around 30-40 Baht ($1 USD to $1.33 USD) per serving and have not increased, as far as I can tell, for the 2 years that I have been back. So if you're pretty frugal, you can definitely get by with $5-7 USD a day for food + drinks. If you really want to go for "ramen diets" then you can definitely get by with lower IMO.

The current going prices for co-working spaces in Thailand are around $7 - $10 a day, net, and most of these places open 7 days a week. But if you can work from home, you can ignore that cost.

Regarding the OP's point about the startup scene, he is correct. It's very much in its infancy and the local work-force are not as familiar with the startup ecosystem and are very risk averse. To add to that, most employees will not understand how equity work and will prefer to work for a safer and more secure jobs. This is a cultural thing so pushing the startup mentality is still a big hurdle that the great people at Launchpad and HUBBA are trying their best to overcome.

Overall I'm quite optimistic about the way Thailand is moving with regards to startups, but it is very much in its infancy and founders are not as well-informed. A lot of incubators and "startup schools" are in it for the fact that it seems like the cool thing to be doing, but most have no idea how to run one and no experience in the space. IMO, there isn't much right now that the founders can gain from the partnership since both sides are basically feeling their way around.

In the end though, I can't recommend Thailand enough as a place that you should come and bootstrap just for the cost of living, wonderful culture, and an assortment of holiday locations. Although, as a Thai, I may be completely biased.

EDIT: Of course, I'm not exactly familiar with the visa situation since I don't actually need it. Based on the OP, it seems pretty complicated, but still worth the hassle.