Why are people being so hard on someone trying to enjoy a vacation on limited funds? There's nothing wrong with taking the mini-bus from the airport instead of a cab, nor is there any lack of reasonable-priced hotels, especially during low season. For those who visit, who have a huge amount set aside for their holiday, great - nothing wrong with that. But for those who come with much less money at their disposal, it's still possible to have a great vacation.
The further you go away from "ground zero", the lower the prices get. Food that costs a certain amount in the middle of Patong is far less expensive if you get away from "downtown", and just as tasty. Spend all the time you want (or can afford) at the bars where a beer might be 140 baht, but the same beer is 30 baht at the nearby 7-11.
If you're a "party animal" and want to get into the swing of things, and can afford it, great! If that's not what you're after, Patong is still a lovely place to visit, and doesn't have to cost you a fortune.
The first thing you should do when you arrive is go find a copy of the book "Money Number One" which will explain to you quite simply what is going on. Reading that book should be obligatory for anyone visiting LOS. If you've got the time and desire, another great book is "Culture Shock, Thailand". The first book is invaluable for tourists - the second book helps you understand why things are as they are.
Try and do what YOU want to do, rather than what you get pushed into doing. As someone else put it, why should you spend your money doing things you don't want to do, with people you don't want to be with? It's your choice - find the places that YOU like, and that YOU can afford, and enjoy yourself. You can spend 1000 baht a day, or 10,000 baht a day. Only you can decide which is right for you, but even someone on a tight budget like the person who entered this discussion can still have a great time if he plans ahead and lives within his means.