Interesting thread and article. I was stationed in Panama with an Army Airborne unit years ago. It's one of many nice places in the world to visit - the bio-diverse jungled hills along the Panama Canal, great sport fishing and scuba diving on the Pacific side. Watch out for the sharks, though. Also had a friend and his wife remark how relatively inexpensive renting a house with maids and a cook was when they resided in the environs of Panama City, pre-Enron collapse. But it's hard to see why more than a few readers of ET would really consider moving/retiring there - unless they live in the U.S. on the hot and humid Gulf of Mexico and have a particular reason for wanting to be closer to the Equator... As pointed out in another post, there's always the spectre of political upheaval in that general area.
This is the "grass is always greener on the other side" syndrome. There is a real and underappreciated benefit to political stability. I do think there are fine places to retire outside the US, but I don't think they're in latin america.
You raise some valid concerns. Heat and humidity, as well as political issues. Although the Panamanian government as you probably know have been pro American since we ousted Noriega. I know, he is getting released, but there is no way we would let that guy get back in power, no way. The CIA would take him out in a heart beat. I plan to go check it out. I have been chatting with a few traders that live there to get an idea of what it's like before I go visit. One trader moved to Boquette recently, but I think he is bored and isolated due to language issues and not many ex-pats living by him. I speak decent Spanish, albeit rusty.