Yes, the recovery from Covid has been dramatic although, sadly, many businesses did not survive or recover.
I started visiting Patong in 2014 and so I'm a newbie compared to many on here, and I was a Sandboxer in 2021 - a surreal experience with no alcohol officially allowed on Bangla for the first week or so and then a 10pm curfew with an armada of about 30 police scooters doing a sweep of Bangla at closing time - very odd, but certainly an experience with the usual Thai creative circumvention of the emergency regulations.
And now? I don't entertain at my place and so last week I was searching for an hotel room on booking.com - the cheapest in Patong was B2,800 and there were quite a few "two beds in a dormitory" at close to that price. I made alternative arrangements. For last nights fun and games I ended up in a lovely resort in............ Kathu! So, still peak season in Patong!
I am based in Kamala these days but, until last December, I used to enjoy the ride into Patong and a few beers on Bangla six nights a week - there's a great band in Kamala on a Thursday! However, the drive into Patong has now got to be such a pain, even on two wheels, that I'm now down to four days a week. Oddly, the parking is fine and Bangla itself doesn't seem too crazy (I went home for Xmas/NY), although I get there after 11pm and so many of the annoying waste-of-space (and oxygen) sightseers have gone home.
So, in my (limited) experience, the days of a wake for Patong are long gone. As far as I can see the island as a whole is thriving with prestige developments popping up all over the island - of course, many will never be finished but that seems to be perfectly acceptable to the authorities. Patong itself is obviously at full capacity, whuich is all that the TAT are interested in and sod the infrastructure.