the website advertising the place was'nt what you might call a discreet web site, ok a few bits were blanked out, but that was done only recently, last year a lot more was on show.

I agree. While doing some Googling over a year ago, I found that website and laughed at it's idyllic description of the simple village folk who just liked to meet and get busy with Farang tourists. Yeah, sure.. I always get propositioned out in the village...
It was, to say the least, over the edge. The fact that the Farang owner was waving this red flag in the face of the authorities was just asking for an eventual crackdown.. You can rationalize and say it was victimless crime but we don't know who he was drawing in to work there. We can say, "let adults do what they want." But, it's still against the law here despite the "norms" of Thai Society..
Of course, we don't know the full story.. It could be that he didn't pay his tea money, pissed off the local pu-yai, or somebody in the Ministry of Social Taboos stumbled upon his website and blew the whistle.
As it went down, I have no sympathy for the guy. He must have done good businees and reaped the benefits for years. I wonder whether he'll get the boot or do time?? Guess time will tell.