Most of these beach resort towns/cities are going to get built up and become more populated and popular with locals and holidaying foreigners alike with 'services' available inline to cater for what demand there is/will be.
It's true that there is usually a small 'entertainment' area in most cities somewhere but outside of the traditional tourist destinations the Thai authorities are quite reluctant to let it get too 'out-of-hand' and only really let it go as far as 'soapy' fish bowl places, "massage" shops and 'coyote'/hostess bars which is what the Thai guys generally go for as opposed to the 'in-your-face' obvious style that foreigners patron most of the time.
However, the next Pattaya? That's very unlikely as there is nowhere really anywhere in the world that's like that place (even Angeles City in the Phillies)....yes, you have a couple of other smaller copies of the place here in LOS but it's very unlikely that it will ever resemble that place. The fact too that there is a heavy armed forces presence in Hua Hin and a palace or two around might have some bearing on it as well.
To be honest, I see more and more Thais going to places like Hua Hin as the rise of the emerging middle classes here slowly carries on (plus it's proximity to BBK) as it's getting more expensive to live in these place for foreigners now, which is why over the last 5-7 years there has been a steady exodus of expats away from the beaches to more inland cities where life is more affordable, usually where the partner is from.
From what I read in some places, many estates in HH are full of second homes, whether it be for Thais or foreigners so would guess it's on the way to being a rich folks get-away destination rather than a cheap n sleazy 2 weeks 'let's get our jollies' holiday for the West's garbage.
However, just idle musing on a Sunday afternoon.
only went there once, hated it, never again, a very boring place ...well for me anyway 
