They're just matching your energy. $100k is an entry-level number in this conversation and, yes, solidly middle class in most cities in California. There's no shortage of homes in nice neighborhoods available here for under $600k, including in large metros like Sacramento. You aren't going to find that in the Bay Area, but the Bay Area isn't representative of the whole state. Not even close.
They're not going to take jobs across California. They could just move further inland and take jobs towards the coast. In fact, I met many blue collar folks who did precisely that. Stockton to SF is just a bit more than an hour.
I can’t believe you’re trying to be sarcastically condescending with this kind of comment. It’s difficult to respect that.