I have to say, there's some grim amusement in seeing how modern politics has led to shock at the thought of actually liking the person in charge of the country.
Well, I can see the peasants liking this king, given he supports their rights (less so the aristos), but the idea, that's been in every portrayal of the FR I've ever seen, including ones way back before any fancy rights for peasants, is that the Cormyreans really love their monarchy, in a slightly loopy way. Hence the Thailand comparison. Obviously it's not that surprising, because I easily found an example in the modern world, didn't I?
Politics has nothing/everything to do with it. In the modern world, democracy ensures much of the populace said "No" to any given leader, which is why it would be particularly surprising were he elected. That has no bearing on this situation, though. What's surprising is that entire royal family is and always has been loved in a pushy kind of "peasants will beat you up if you don't bow" sort of way (it pretty much says this in the article). It's not so much impossible to believe (it's not) as vaguely irritating because you know it's only that way because some hack author/writer decided it was, rather than because it made sense.
Ferratus - I do indeed. We all know what kind of rights are implied here, though, and cannot doubt that they go wildly beyond anything any medieval peasant (British or otherwise) dreamed of.
It's funny that you mention Domitian, because if you look around the world, many countries utterly untouched by the Roman Empire had either identical or far more severe restrictions on certain castes or social groups (which serfs, villeins, etc. most assuredly were). China and Japan come to mind. So you can't blame it all on the Romans. It's more like standard operating procedure.
Still, the main ren-faire-ish-ness all comes from idea that Nice Old Mr King gave them these lovely rights and they're all terribly polite and no-one oppresses anyone and just what...? I mean... Ugh... I think this is what you're saying, though.
I'm pretty sure the good people of Cormyr would be highly unpleasant to any Cormyrean they suspected of "un-Cormyrean activities". It strikes me as the sort of place where McCarthy and his ilk would have had a field day. Gosh, the more I think about it, the more Cormyr seems ripe for what it's creators would no doubt regard as "abuse" and my group would regard as "Excitement!"

I like it more already!
LightPheonix - Judging from the D&D Compendium, I'd say it was an oversight, as there are at least some PPs missing their action point abilities there.