I think you're making more assumptions than you can handle.
Yes, there are a plethora of famous thai writers.
Some Thais do read voraciusly, just not generally in public, but rather at home. I'm acquainted with a number of them.
There may be a few more libraries around than you've noticed.
Yes, Asians generally don't read alot of novels in public or on public transportation.
Not everyone considers Thai script to be ugly, but quite the opposite.