$85-100k seems to be about entry level for software engineers with a BS in CS from a good school at established companies in this area. My impression is that the Google/Facebook talent war has significantly increased this over the past few years.
I've just moved recently to Palo Alto, but I've heard that compared to several years ago the rent, utilities and general cost of living has gone up significantly too. A coworker of mine has a studio in the Richmond District,SF for $800/month, but now that same studio would probably rent for $1300/month. That's an almost $10'000 increase in pre-tax income needed to cover the difference.
I'm guessing these guys have several years internship experience and a load of side projects coming out of school? I know a few guys who came out with just a degree and 0 exp starting at around the mid $50k range.