I love Thailand. I've loved it ever since my family arrived there in the mid 90's and even now years and years after I have left, I feel that my memory of life in Krung Thep (Bangkok) is the closest thing I have to a memory of a home. That being said, embracing everything that is Thai, is embracing all of its contradictions. The hot atmosphere and freezing air conditioning, the painfully spicy food and its unmatched flavors - despite how spicy it is you just can't bring yourself to stop eating it.
Things are not good in Thailand at the moment, and don't let the tourism office tell you otherwise. A former classmate of mine took the picture you see to the right

of the front page of a local newspaper. If you decide to go to Thailand for vacation this year, just be mindful of the way things work, the sky could be falling but the attitude will still be the same - the ever famous Mai Pehn Rai ("Nevermind" or "no worries").
I'm sure the islands are unaffected, and Thailand as a whole is as safe as it as always been (use your judgment when you read the last part of that statement) - this probably the basis of the government's rational for lifting the state of emergency, well, that and the potential negative impact on tourism revenue.
If you are still all about immersing yourself in Thai culture,think of a coup as a tradition in Thailand. Know it is going on and remember that you are a traveler not a war correspondent.
Official
statement from the ministry of tourism in Thailand.