No when you hire someone for $150 and you can't use it, it isn't a waste. When you hire someone for $350K you don't have waste. That is a huge sum of money for any development project, that could fail.
The person you're currently grilling is a post-doctoral researcher with a published body of work in statistics and electrical engineering. Please don't suggest that these people are overpaid or unqualified, or that they'll produce something completely useless. This could be a yearlong relationship, why start on a sour note? They deserve much more than $1,000,000 for working with this community.
I am a freelance programmer, have started my own companies, and if you think this is grilling then you are mistaken. This is how the real world conducts business. If I could show you some of the request and questions I get asked when I am doing a project, my grilling would look like a cakewalk. So now let the people that know what they are doing, do what they need to do.
Remember theymos was going to have a group of people to head up doing this and question the people he choose to do this. Guess what, I am making myself that official unofficial person. So in 6 months when theymos goes we don't have $350K worth of bitcoins anymore and no new forum is coming, I can sit and go at least I tried to do something.
I don't think they deserve more than $150K for this, most programmers can do this with that amount of money. But it isn't me making the deal so yeah...
We don't mind the questions. That's what we're here for right now, and why we've created accounts with our day to day handles. We're here to engage the community. So ask away.
As for the amounts being tossed around, I obviously can't speak for Theymos or for James. But I can do a quick back of the envelope calculation. gweedo, being that you're a programmer too, I'm sure you can relate to this.
A typical programmer costs around the price of about 80k a year (that's low for Silicon Valley too). Which comes out to about 37 an hour. All companies need to pay for benefits, overhead, rent, electricity, etc on TOP of paying out a employee. So normally you would charge a rate around 2 to 3 times the salary of a employee. That's already around 114 an hour, or 240k a year. And there's already more than one employee working on the bitcoin forums... so yea.
As a freelancer, I'm sure you charge around the same rate to compensate for the "self-employment tax," your own benefits, etc.
So this your only project? You are exclusively working only on the forum software? Cause I worked with design/development firms and they usually have multiple projects going on, to keep cost down for the clients. A forum costing $1 million and taking a year to build, I never seen this happen, and to be honest it is insane. When we have an amazing community of developers that probably love to dedicate a few spare hours a day helping this cause.
So in response to your previous questions, as much as I'm allowed to at least, we do have other clients and we do try to keep our costs low. As such, we believe our rate is competitive. In all fairness, we hope that this project doesn't just end in a year, no software project ever just ends. At least, not open source ones. We do hope that the community can contribute as well. In our shared experience though, someone does need to champion the cause and often times money is the best motivator. We hope that we can set a good base for the forum, get the designs out the door, then allow the open source community to help fix bugs and build features.
The most successful open source project are usually backed by some commercial sponsor. Node.js itself is backed by Joyent. Also, we want to keep the funding within the hands of BitcoinTalk. This also ensure that any commercial sponsor outside the community can't hijack the project by threatening to pull funds.
As for other startups, many millions have been invested into startups that still have not turned profitable but continues to succeed in their own space. Twitter is a great example of this. We are comparatively cheap on that scale.
As for the software itself, it is not a custom piece of software. When open sourced, it'll be available for use by anyone just like vBulletin.