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Regarding Internet, my personal impression is that it is indeed faster and more reliable in Panama City.
Regarding English, you shouldn't have any problems. Virtually all companies (including banks, utility companies, etc) have at least one person that speaks pretty good English.
Yes, most English-language real estate websites about Panama are severely overpriced. Do come to Panama and take a look around... there are still bargains out there but they are not advertised to foreigners.
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