What IF neither of the candidates were the real incarnation? What if - the real Panchen Lama incarnate was an extra-ordinary boy living an extra-ordinary life outside of the Tibetan/ Chinese realm?

This is more than possible... in today's world. Too bad for mankind, if they don't find him!

In fact there have been cases where recognition of a particular lama has skipped several generations. It doesn't seem to matter much in the long run, although it might have political repercussions in the short term.

Apparently, some of the important lamas can choose where they want to be reborn (the Dalai Lama has said his next birth won't be in Chinese Tibet) so there seems to be little danger of them inadvertently appearing as a farang.

The most important difference, aside from the differing rituals, prayers, rites and beliefs, is that the Tibetans practise their religion in a very earnest and profound way unlike the Thais unfortunately.

I've travelled in Tibet and visited Tibetan communities in northern India and it hasn't been my observation that most Tibetans practiced Buddhism in a 'profound' way. But perhaps measuring profundity is at best subjective? Observance of ritual is very common, if that's what you mean, but no more so than among many Hindus in India.

What IF neither of the candidates were the real incarnation? What if - the real Panchen Lama incarnate was an extra-ordinary boy living an extra-ordinary life outside of the Tibetan/ Chinese realm?

This is more than possible... in today's world. Too bad for mankind, if they don't find him!

In fact there have been cases where recognition of a particular lama has skipped several generations. It doesn't seem to matter much in the long run, although it might have political repercussions in the short term.

Apparently, some of the important lamas can choose where they want to be reborn (the Dalai Lama has said his next birth won't be in Chinese Tibet) so there seems to be little danger of them inadvertently appearing as a farang.

Was more thinking of a child born of the two worlds... not so far-fetched in modern humanity.