Many great comments.

First, in general big players do take longer to develop.
Second, Thompson started demonstrating his talent as early as 2018-'19 when he scored 14 goals in 27 AHL games over two seasons including playoffs.
Third, Krueger was a terrible coach. Miller, Skinner, Okposo, Sheary, Rodrigues, Montour, et al had career worse seasons playing for him.
Fourth, when Granato became head coach at the end of 2020-'21 Tage was put on a line with Mittelstadt and Asplund and responded with 7 goals over the final 20 games.
Fifth, Tuch was a huge factor to driving both Skinner and Tage to higher levels. Pre-Tuch Skinner and Tage were on pace for 25 and 30 goals, post-Tuch that jumped to 40 and 48 respectively.
Six, while his shooting percentage improved last year, in the previous seasons he was aiming at the goalies crest. This past season many of his shots were wide or hit iron, because he was aiming for the corners, LOL he learned how to score.
Finally, since this an extension, think of this as an 8 year contract. $1,400,000 for the first year then $50,000,000 for the next seven $6,425,000 for eight years will appear to be a bargain if he can average 30 goals for the next 5 years.

MY BIG BOLD PREDICTION FOR NEXT YEAR, WE WILL THINK $50,000,000 IS A BARGAIN

EDIT:
After Kyrou signed his $65 million ($8.125 AAV) contract, this is looking like a bargain.
They are the same age, and drafted the same year.
Jordan played with Schenn, Thomas, Tarasenko, Buchnevich and O’Reilly to help him reach his career high 27 goals.
Thompson's contract is looking good from where I am sitting after scoring a career high 38 goals.

Absolutely one of the best contracts in the NHL only 20 games in.

I was a fan of Tage when the trade was made.
"First, in general big players do take longer to develop."
Look at voting, how few liked the deal!
It is not just his goal production but he skates extremely well and passes even better.
While he is riding a hot streak he is on pace to break 100 pts. First Sabre since Pat LaFontaine.

The poll question asked "Was it a good signing". (Yes or No). No to both, looks like a great signing by the Sabres.

I guess folks might say, Thompson should not signed for "so little" long term. But sometimes a player relaxes (for the good) when he know he lifetime security. Good for Thompson and the Sabres.

Talked to a Sabres fan after this signing to get a bit more context on it and it sounds the optics weren't so much "overpay after one season" but "set the tone for our team's culture". After Eichel, the team really needs to refocus it's culture and guys like Thompson are obviously going to be a big part of that. Looked like it was a better move to bank on him growing out from this season with a hefty contract and setting the tone for the rest of their players rather than potentially waiting and having it become an arbitration mess. There's still a long way to go on this deal considering it hasn't kicked in yet, but he hasn't regressed from last season at all and if he keeps up this pace it'll be a steal.

Also Kruger not being the coach anymore has helped.

I can admit I was dead wrong on this guy.