Postgresql – Unable to create read-only user in PostgreSQL 9.5

I seem to be having trouble creating a read-only user for a database in a fresh install of PostgreSQL 9.5 with PostGIS 2.2 on Ubuntu 16.04. Here is what I've done so far:

Ran this,

CREATE ROLE dbowner LOGIN ENCRYPTED PASSWORD 'dbownerpassword';
CREATE DATABASE thedb WITH OWNER dbowner;
GRANT ALL PRIVILEGES ON DATABASE thedb TO dbowner;
CREATE EXTENSION postgis;
CREATE EXTENSION postgis_topology;

GRANT ALL ON ALL TABLES IN SCHEMA public to dbowner;
GRANT ALL ON ALL SEQUENCES IN SCHEMA public to dbowner;
GRANT ALL ON ALL FUNCTIONS IN SCHEMA public to dbowner;

CREATE ROLE readonly LOGIN ENCRYPTED PASSWORD 'ropassword';
GRANT CONNECT ON DATABASE thedb TO readonly;
GRANT USAGE ON SCHEMA public TO readonly;
GRANT SELECT ON ALL TABLES IN SCHEMA public TO readonly;
GRANT SELECT ON ALL SEQUENCES IN SCHEMA public TO readonly;
GRANT EXECUTE ON ALL FUNCTIONS IN SCHEMA public TO readonly;
ALTER DEFAULT PRIVILEGES IN SCHEMA public GRANT SELECT ON TABLES TO readonly;
ALTER DEFAULT PRIVILEGES IN SCHEMA public GRANT SELECT ON SEQUENCES TO readonly;
ALTER DEFAULT PRIVILEGES IN SCHEMA public GRANT EXECUTE ON FUNCTIONS TO readonly;

Then I restarted,
sudo service postgresql restart

Now,

psql -h localhost -U dbowner thedb
thedb=> CREATE TABLE testtable(col1 VARCHAR(100));
CREATE TABLE
thedb=> INSERT INTO testtable values('123');
INSERT 0 1
thedb=> SELECT * FROM testtable;
 col1
------
 123
(1 row)

psql -h localhost -U readonly thedb
thedb=> SELECT * FROM testtable;
ERROR:  permission denied for relation testtable

pg_hba.conf already has local all all md5 and host all all 127.0.0.1/32 md5. Anything else that I might be missing?