This is an interesting discussion.

I think any obvious price cuts decrease the sense of safety and also the hotel's value.

The difference between a cat 4 and a cat 5 is the price, not necessarily the experience. Hotel chains understand this, hence the array of trivially inexpensive "special treatment benefits" like breakfast, chocolates, and wine.

By maintaining prices they maintain the status of Thai tourism and its hotels. The fact that some of us (less, but still some) still pay the normal prices affirms that status.

Steep price cuts, even if private, would certainly introduce a greater sense of panic and danger in tourists.