This isn't actually that implausible considering Thailand tried to play both sides, and the British were receptive to granting a defense guarantee that Bangkok sought; the problem is that the United States took a rather dim view of Thailand due to the Franco-Thai War, and the British were not willing to extend said guarantee unless it was done jointly with the Americans. However, barring the French Government not falling or opting to fight on from Africa, I don't see anyway for Phibun not to push forward with the invasion given Thailand would seemingly never have another chance like this to "correct" its borders with one of the European Powers. Instead, the Roosevelt Administration would need to agree with the British to defend Thailand in the case of a Japanese Invasion just as a similar guarantee was extended to the Dutch East Indies, and while it might unsettle a few officials in Washington, it could be argued well on strategic grounds.
The Thai Army was actually rather respectable, and for the single day of combat it saw with the Japanese (not much of a gauge, but not much else to go on) they managed to hold their own fairly well all things considered. However @Peg Leg Pom is right in that Thailand wouldn't hold out in the long-term, and it would delay the Japanese push into Burma (though not Malaya). The presence of a significant Japanese garrison of (~150,000) was also something that happened historically, so they wouldn't be inconvenienced in that respect either. The biggest changes are liable to be much stronger support for the Free Thai Movement and a Thai Government-in-Exile (though it might strain relations with China) and the presence of remnants of the Thai Army on the Allied side in the Burma Campaign.