I have an idea that might help though: if logical qubits are so difficult to build and require thousands of times more physical qubits, and physical qubits are also difficult to build, perhaps we can simulate physical qubits with thousands of times more "ultra-physical" qubits.
Regarding claims of factoring small numbers: First note that error correction becomes exponentially more important for longer computations. Second, see this
https://arxiv.org/abs/1301.7007
Regarding building a tower of ever less noisy qubits: it turns out there is something called a threshold theorem which requires a certain minimal level of noise before concatenating error correction schemes makes things better rather than worse.
https://en.m.wikipedia.org/wiki/Quantum_threshold_theorem
Reaching this threshold for physical qubits in the laboratory is perhaps the primary goal of experimental quantum computing.
https://www.research.ibm.com/ibm-q/resources/quantum-volume....
With hundreds you can already speed-up chemistry simulations, what will have a much larger impact than breaking RSA.
You can? How?
So it's possible to simulate 25-qubit-level chemistry with a laptop, 50-qubit-level chemistry with a supercomputer, and 100-qubit-level simulation with a supercomputer is impossible and will be impossible for a very long time.
But going from a 50-qubit quantum computer to a 100-qubit one may take just 2 years (or 4, it doesn't really matter), and then another 2 years to get to 200 qubits, and so on. Quantum computers will solve chemistry problems in minutes that would otherwise have taken 100 years to simulate.
I don't think it's a given that just because I want to simulate a quantum mechanical system in some way, that a quantum computer is a useful tool. Or it might be, I don't know. I just don't think it's enough justification that there happens to be the word "quantum" in both the problem description and in the name of the computer.
See this paper for an overview https://arxiv.org/pdf/1203.1331.pdf
I doubt it's just marketing. UNSW is the leading university in researching silicon quantum computers and one of the best in researching quantum computers in general, too.
This tech is aiming to be "mainstream". Google, IBM and others' quantum computers will likely prove useful earlier, but we won't see them be paired with our personal computers. This on the other hand, offers that opportunity, but it will lag behind other types of quantum computers in terms of performance.
But this makes it possible to distribute them at more datacenters that can be much easier to reach than what Google and IBM are creating.
So in principle, there might not be any really fundamental issues preventing such things in every home, with mass production economies making them cheaper and more reliable.
The real question IMHO is whether this will be useful in some way compared to just connecting over the internet to some data center running them.
https://spectrum.ieee.org/tech-talk/computing/hardware/ibms-...
Otherwise, they may claim "quantum supremacy" and 3 months later someone else will prove that the same simulation can be done on a classical computer.
EDIT: sorry guys, I assumed the sarcasm would be transparent. Apologies.
I would say the biggest innovation here is that they have made a silicon based integrated circuit with fault-tolerant qbits (using error-correction codes they invented).