I disagree. Thailand can offer luxury. There are plenty of 5* hotels which offer world quality service - not just in Bangkok (Mandarin Oriental, SIam Kempinski, Capella, Four Seasons, etc.), but also in Phuket (Anantara, Amanpuri), Phuket (Four Seasons), Hua Hin (Chivasom), Chiang Mai (Aleenta Retreat), Phang Nga (Six Senses), Samui (Banyan Tree). There are loads of others, but I hope I've made my point.
As for fine dining restaurants, they most certainly aren't a joke. Last year I had excellent food and service at Blue, Le Normandie, IGNIV, Maison Dunand, Savelberg and Sühring. Some might say not cheap, but compared with similar quality establishments in the occident, they are great value for money too.