See "Could a Neuroscientist Understand a Microprocessor?":
https://journals.plos.org/ploscompbiol/article?id=10.1371/jo...
(which is actually looking at transistor-level data, not gate-level, but the games examined are simple ones)
Quantum computers, if large enough ones ever materialize could give us a revolution in computational many-body physics because they could actually circumvent this exponential scaling.
The most promising straightforward avenue though is actually just developing better algorithms that make more insightful, appropriate approximations to correctly capture the physics we care about. That may or may not be what you meant by computational advances.
Has anyone tried to generalize it to, say, 10^2 electrons and ions? What is the smallest system that empirically exhibits superconductivity?
As far as pen-and-paper theoretical work goes though, something like 10^2 atoms is actually more difficult than 10^23 of them because 10^23 is basically infinite for our purposes so there are all sorts of useful limits one can take. When you consider something like 10^2 atoms, many useful approximations go out the window. You can no longer ignore the physics at the edge of the material since everything is very close to the edge, you can’t make assumptions about homogeneity, statistical arguments about the aggregate behaviour of electrons become unreliable, etc.
You start with 1D problems, move to small 3D volumes, and build from there. ML is good at "interpolating" or guessing what the answer must be from a given input. Maybe, one will need many nested levels of ML models to realistically simulate a solid-state material, but this is not entirely impossible, I think.
If such an ML simulation can be done reasonably efficiently, then likely there could be a theory that can be formulated in terms of equations, approximating the "theory of everything" with sufficient detail.
Believe me though, people are trying.
What I'm saying is that if an ML model can approximate quickly the solution, then there could be a simple theory expressed in terms of equations, approximating the full problem. I.e. if there is an efficiently computable procedure, then it's a sign that there might be a good simple approximating theory.
The trouble with condensed matter physics has never been that the underlying phenomena are complicated. We’ve had a more sufficient grasp of the microscopic physics of materials since the 40s. I could write down the complete ‘theory of everything’ Hamiltonian for a condensed matter system in like two lines. The trouble, is not the fundamental building blocks, but how you take a mathematical description of electrons bumping into ions and then generalize that to 10^23 electrons and ions.
The game is to make an approximation that gets rid of the stunning complexity of the full theory without while still preserving the features that are relevant to the problem you’re trying to solve.
Imagine trying to understand how a modern computer running a video game works, but all you understand is the basics of logic gates. Sure, in principal you could understand what’s going on in terms of bit flips, but it’s hopeless in practice. Interacting, strongly correlated quantum mechanical systems are very literally exponentially more complex than a classical system like a computer.