1x would be 1x market rate IMO.

Let’s say your skill is worth $125k avg.

I’m not exactly interested in the people who can be that, and there’s a lot of them. I want the people who can make me feel like $250k is a steal etc.

The median salary for devs in the US is ~$110k, which is pretty close to your $125k. 200-250k TC doesn't seem like top-tier compared to the top of the market though.

Considering how sheepish parent is being and how carefully they are saying it, seems likely that they're hiring people outside the US where market rates are significantly lower and trying to feel proud of themselves for paying some few peanuts extra.