OP here. Sorry I wasn't clear. In my view, 1.5 bathrooms is normal, in his view it is very little. I am in europe. They are in India. However, they spent 30+ years in the USA, so you can't excuse his comments as ignorance. I have 1.5 baths and they have 8 bathrooms.
His comment was directed specifically to his DD to teach her a life lesson that if she does not study hard she will end up like me - poor and miserable - because I have only 1.5 bathrooms. Except I actually feel quite comfortable - I mean we have a nice home, a car, can pay bills - no mercedes or yacht.... but I am not poor or miserable.

Number of bathrooms does not equal amount of happiness!
What bothered me so much was that he said this in front of me, but sort of over my head, like I wasn't there or it didn't matter if I was there - Like who cares if I hear something offensive about me, I don't count. It's more important his 10 yo DD get this valuable lesson.
And I also felt embarrased for my dear friend, who would never say such a thing, and even if she thought it, she would discuss it later - in private. And I felt awkward for his DD - who is learning that is OK to talk badly about people in front of their face. And she is learning that 1.5 bathrooms is something to be ashamed of.
I hope that clarifies everything.
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