Keep in mind that if you cancel the visa in Bangkok, you might have problems flying to Samui. As soon as your visa was canceled you are supposed to leave the country. This could be why the law firm in Samui is advising not canceling it in Bangkok. You could easily end up on overstay, with a fine, and a mark on your record.
being that you are on a type O extension based on Thai wife you can work, and get a work permit, by starting your own business in partnership with your wife. By doing this you cut in half the amount of registered capital needed in the business to just bt1million, and the number of Thai employees to just two, with one of them being a licensed Thai accountant, that can be part time. With this business, and your work permit, making at least bt40,000 a month, and paying your Thai income tax for three years, plus other requirements, you will be eligible to apply for Thai permanent residency, or directly to Thai citizenship. If you don't work then none of the other requirements matter. This is just something to think about if you plan on living here.
With the correct documentation to prove you are married, one gets the DTV through soft power, in your case Muay Thai classes, and the other as a dependent after the first one gets the DTV.
Thailand trusts everyone to begin with, until they prove them wrong. When that happens they tighten the rules for all the new applicants, but those that already have the DTV, are grandfathered in for that five years, meaning you can leave and return for five years. That's just how Thailand is about anything new.
You do it at the immigration office closest to where your current TM30 lists your address as. Wherever you moved to a new TM30 was supposed to be filed within 24 hours of you moving in.
you need a lease for wherever you live. A temporary hotel will not qualify, unless you get a long term lease from them. You will enter on a 90 day visa, giving you enough time to open your Thai bank account for the bt400,000 needed in the account for at least two months before you apply for the year extension to meet the financial requirement. It also gives you enough time to arrange your long term living arrangement.
they didn't reject it. They gave you 60 days to finish your Thai vacation, and return, to finish your application. They are being nice. The normal request from an embassy when they suspect you left the country you applied in before you received it, was to ask for a copy of every page in your passport, including blank pages. You got lucky.