I just stated by experience and Jim is doing more than just tourist visas. If you have other advices, you are free to let us know rather than just commenting like this. This might help more.
I’m just giving advices on how to make it smooth if you don’t have time or don’t want to manage it by yourself. Jim’s doing more than just easy tourist visa so you are not right. If you want to make it by yourself you are free to do of course. Visa agents is a business that’s right but no need to state it’s a scam. About the location you wanna stay, up to you and your budget, of course Penang has many cheap guesthouse but not everybody is looking for backpacking style of life and some are able to spend a couple of baht to get a really nice affordable room there. Have also more expensive ones than Chulia mansion of course. And if you cannot afford the new tourist tax of 5 MYR per day then better go to another destination.
And don't need to book with him, just show yourself there at his office, very easy, if you go there before 8pm then they will manage your visa on the next day and get it back to you the day after at 2.30pm