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In retrospect, should I have been offended? Did I fail to get a social cue?
Most people would be offended, but shouldn't be.
A lot of people think a child having a disability is a horrible, awful thing and makes the child less valuable as a person. Even if they would never say it, deep down they think this. So they react badly if told their child might have a disability, but that's due to their own prejudice.
Occasionally, people might claim a child has a disability to insult the parent. But if the parent responds by saying the child really
does have a disability, or is suspected of having one, the person trying to insult them will typically feel guilty about it. It's considered highly socially inappropriate to mock a person for having a disability - more so that mocking a non-disabled person by comparing them to disabled people.
Of course, he could have been genuinely trying to help. Either way, your response was fine - a lot better than many people.