I don't know what people expect to get for cheap accommodation these days, but clearly, more than what they're getting. I've stayed in many guest houses in Chiang Mai, in fact I live here and booked a room for a friend and myself for 1 night on the town. Yes, it's old and dilapidated, but we paid under 300 Baht for a double! Anything less than 400 Baht is going to be a bit of a dump. However, we needed a place to sleep for the night and this place met our needs. I found the people friendly enough - keep in mind that how you treat people depends on how they treat you back. I'm sure they deal with a lot of entitled tourists with attitudes on a daily basis. There are a lot of other guest houses and bars within walking distance, as well as a restaurant or two. You can walk to Loi Kroh within 10 mins. Just keep your expectations low, and you won't be disappointed.