The old racism issue...AGAIN
Thais are xenophobic (not racist - racism is internal). What a surprise? How many times does this have to be discussed?
They are a basically homogenous nation, never militarily colonized (unlike the rest of the surrounding countries), where people are indoctrinated from birth that Thailand has one culture and one essence ("Thainess") and where people have a disproportionate view of Thailand's place in the world ("Thailand #1") and where everyone is basically told to be suspicious of anyone who is not like them - just like the rest of Asia (try going to Korea or Japan, if you want to feel really unwelcome).
Bayareapundit - they hate everyone. It might be more blatant, based on your experience that they particularly hate Kaek (what they call Indians, Arabs and anyone else of a swarthy complexion). But, they hate Farang, too. They're just a lot more subtle about it. I experience xenophobia on a daily basis from my Thai co-workers and I'm as WASP as you can get - blonde hair, blue eyes, pasty, pink skin. Unlike the low-end Thais you met, who might be excused for their ignorance, the Thais I'm around are supposed to be educated and enlightened, having gone to school in the West. Yet, they make derogatory remarks about Farang every day and there is a definite double standard in terms of how we are treated.
However, your obnoxious behaviour didn't help matters any and only managed to strengthen stereotypes about Indians.
I would also like to point out that India isn't exactly a bastion of open-mindedness either. I've been there twice (once for 3 months) and find the people incredibly dishonest, rude, aggressive and downright hostile at times - probably the most insular, xenophobic place I've ever been in my life.