, yes, they stopped doing an affidavit. Seems strange if they won't legalize documents from sources of income. I dont know if "certified copies" includes "legalization" but it is not the same as such. But yes, they dont seem ready to help you much.
, get the letter legalised at the Australian Embassy. That should work but as many times in Thailand no guarantee. You must ask your local Immigration if they will accept. Many ppl do have success with this. The reason why most embassies wont do the affidavit any longer is because the Thai govt. requires the Embassy to do the exchange into Thai bath and "guarantee" your income. Kind of impossible. By documenting the income from the source and make the Embassy legalise it, the Embassy doesnt guarantee your income but only confirm the authenticity of the document. The exchange into THB is then done at your Immigration.
, there is yet another route to go, which will work for most being able to get an OA in their home country even your Embassy wont do the affidavit. You can read that route above in my comment above also, namely to document your income from the sources and get it legalised at your Embassy.
TR and OA have each advantages and disadvantages. TR takes no money. Multi TR takes money and to leave country and re-enter once in a white. OA takes much more money, health insurance and more but then you can stay for one year without leaving country.
If it is a single-entry ED visa it will be possible to get an extension at Immigration if you meet the requirements. If it is a multiple-entry visa, Immigration will (most likely) ask you to leave and re-enter Thailand.
, technically true, but hard to enter on an O visa without getting one. But currently, all O visas take health insurance to get at embassies, but might be a leftover from Covid...
, yes, the visa rules of Thailand are truly a mess. Each Immigration has its own ideas, sometimes even each Immigration officer. And the "rules" keep changing even the official laws and rules are the same.