If he performs like he did last year he’s worth it, especially if it’s a long term deal. People anchor expectations in contracts that were signed years ago in a different cap environment, which isn’t realistic.
Hughes last contract, in a flat cap environment when he had yet to establish himself as an elite number 1, was 9.6% of the cap as an RFA. This ask is 12.5% of the current cap (likely 12.2% of cap when deal goes live next year with a 2 million cap increase), is buying out UFA years after being on a sweetheart deal as an RFA, and will likely have established himself as a top 10-15 dman in the league upon signing.
If he signs for less than that it’s great for the Oilers. People have PTSD from the Leafs locking up a ton of cap in their top guys, but the issue there is more with the players/culture than the strategy.