I had this happen early in my career. Recruiter and I talked about a range, went through 3 rounds of interviews, and I got an offer below what I was currently making. Absolutely not in the discussed range. The offer came via email and I was insulted - I declined without negotiation. I still have the email, and I was apparently pretty polite. A week later they pinged me back to ask if I had considered it, if I was dissatisfied and that they could go up. I just politely restated my decline. They'd already wasted my time, and as junior as I was, my time was still valuable - I took time out of work, traveled, etc. That was almost 10 years ago and I'm still salty about it. That should tell you what kind of impression this behavior leaves behind. Looking back at the emails now, I am very surprised at how professional and polite I was about it - my memories of 20-something me are apparently overblown :)
It was bad form to make an initial offer that far below the author's stated salary requirement, but I'd be shocked if there wasn't room for negotiation. The author didn't mention whether he tried pushing them higher.
The recruiter has no incentive to tell the truth regarding salary unless it's way off. Think of it this way: worst case scenario, exactly what happens happens. The recruiter gets someone to apply who everyone likes but they don't accept an offer. Best case scenario, something makes the guy take the lower offer - whether it's his wife losing her job or he gets wined and dined enough that he's willing to take the hit to COL to have Amazon on his resume.
The recruiter already got "credit" for having the person apply.
What isn't clear is whether he countered. It sounds like he didn't because he mentions family as the main reason not to leave. But I imagine had he countered he could have easily gotten to that $170k number or very close.
Recruiters are just sales people. They usually have limited if any tech background and heavy business or sales background. They should be treated skeptically, like any other sales person.
If they clearly can't afford your salary range then this should be made upfront.