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Well, I think it is better to talk about good value for the money accomodation.
Otherwise you get what you pay for, 500 baht around Sukhumvit is exactly that kind of rooms you described. Thats why I always move up to 1500 baht range to get OK hotels there. (Nana Hotel was full at that time)
Good value for the money is Sakura Grand View in Hat Yai, 980 baht for excellent rooms and facilities. In the mid-segment around 6-700 baht is completely different, most hotels I tried in the past was very bad so it is definetely worth the step up to 980 baht if you compare with cheaper hotels.
I have same experience in Penang/Malaysia, better pay few hundred bath more and get good rooms instead of the sleasy rooms offered.
I also think accomodation in Patong is quite good value for the money in low season, in high season many hotels simply charge too much. But a good value hotel I liked in the past was Baan Ton Sai, budget accomodation but still nice and clean with garden surroundings and swimming pool. CNN is also a good one due to the location. Victoria Guesthouse has excellent location on the beach.
My cheapest accomodation and maybe the worst I had was a small bungalow in Koh Lanta with only cold water and a fan until midnight and mosqito net over the bed. I paid 300 baht. I could not sleep because it was so hot and the bed get wet. Lot of insects.
I remember I read a guide book about Phuket printed 1994, they wrote Safari Beach Hotel charged 300 baht per night. When I went to stay there 1999 they charged 1800 baht night.
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