Nothing has changed. Just because you got rejected doesn't mean that it is not possible. In fact, people on tourist visas (and visa exemptions) have to open up a bank account and deposit 400,000 or 800,000 baht in order to an O visa here.
The COVID health insurance and quarantine requirements apply no matter what type of visa you have.
So your argument is invalid. If you got back-to-back 12-month extensions instead of border-hopping, then you would not need the COVID insurance and quarantine. LOL.
Well NO-ONE ever has to show banked money on entry.
People only ever have to show banked money when applying for visas and when applying for extensions.
The consulate you used only wanted to see $700. The norm is wanting to see 400,000 baht (which matches up with the requirement to get an in-country one-year extension). One that I heard of wants to see 400,000 baht PLUS 40,000 baht per month income). That's to get a 90-day O-visa.