Over 20% of the Thai economy is tourism which doesn't take into account expats. It would be crazy to think they don't want foreigners here. They economy would tank. I do think we are tolerated as long as we are not a threat to there political system.
I might add that my local immigration was also clueless when I did my first extension. They tried selling a multi entry to go with my extension.. I told them the visa already allows me to do this that is what the M means written on the visa. They didn't believe me and told me my visa would be cancelled if I left the country. So it advisable to get knowledgeable about the visa you are on.