So, the deal is that quantum computers don't do everything for you. They can do some things faster than any classical algorithm, but they're not known to, say, do NP-complete problems in polynomial time. (Friendly reminder: we don't even know whether classical computers can do that or not.)

Supposing that you've got, say, three qubits which can all be 0 or 1, a classical computer can be in one of eight states 000, 001, ... 110, 111, and we can easily store one of those numbers in memory. For a quantum computer, we have to instead store 16 doubles in memory, because it is allowed to be in any state:

|S> = a0 |000> + a1 |001> + a2 |010> + ... + a7 |111>

such that the complex numbers a0, a1, ... a7 square-sum to 1. In other words, for n bits you often need to store 2^n numbers.

There are rough-and-ready ways to get around a bit of this in simulation with a sort of 'lossy compression' approach, it's stuff like: you form the "state matrix" (basically, take your row-vector and form an outer-product with its conjugate transpose), diagonalize it, and keep only the eigenvectors for the largest eigenvalues. If your system is simple enough you might be able to just reduce the bulk of the calculation to "what's happening to these eigenvalues?" and you can leave out any explicit further representation of the vectors themselves.

Now, here's where this gets interesting: the world is quantum, especially when we're talking about molecular chemistry. So, we have these chemicals which obey quantum mechanics and they have this huge quantum state which is cumbersome to compute with. But with a quantum computer, we can just program those rules and that behavior into the computer and see what it does with the physics that our classical computers can only barely simulate. So that's why these quantum computers, when they're doing what they're good at, beat out our supercomputers.

But why can't they beat out our supercomputers unilaterally? Because that's just not what they do, and for the most part these 2^n complex numbers which tell us the quantum state are not directly observable.

Let me put it like this: at the end of the day, when you measure the |S> above in the computational basis, you will get a classical 8 bits of information and the quantum state will be destroyed: you measured, you found |010>, that is the state of the system now. Prepare millions of these and then you will find some statistics for |000> and |001> and those statistics will give you a few decimal places for |a0|, |a1|, |a2| respectively, with no information about the phase factors of the complex numbers involved. It's not terribly enlightening of itself.

But then there are some generic problems, like "what is the only n-bit input to this set of logic gates which makes the result bit come out 1?" where you can do better. The answer to that is only n bits, but our only classical algorithm searches through all 2^n settings of those bits to find the answer. It turns out, if you can make your logic gates act their normal way on a quantum state, then you can pass one of these a-little-of-everything superpositions as input, then do a little magic to the input bits based on the resulting output bit, some 'yadda yadda' about a quantum fourier transform, and poof: when you measure the bits you will, with high probability, get the bits which set the logic gates to 1. That's with only the one query actually sent to the quantum versions of those logic gates. You peek inside it once and the resulting state knows enough about how it was created that you can extract out something interesting about the function.

So for some algorithms like factoring integers and searching for special inputs to a process, you really do get "exponential speedups" from quantum computers. However, those algorithms are really special-purpose stuff; quantum computers are not known to make arbitrary computations faster. They will make some specific computations, like chemistry calculations, faster.

With four qubits we have been able to factor the 4-bit number 15 into 3 * 5. That's the biggest that I know we've built, although some companies (like D-Wave) claim that they have built bigger systems under a different model of quantum computation (and hence can't do the factoring algorithm straightforwardly). The problem right now is that you need these big experimental apparatuses to cool, manipulate, and read out values from these quantum computers, and while you're doing those tests the clock is ticking -- states don't stay 'coherent' for more than a fraction of a second, after which they act pretty classical. There's just not much we can do with these systems until we get them to be always-online and stuff.

Finally, 1 and 2 qubits don't really show off all of the diversity of quantum mechanics; for one thought-experiment that I like to use to show people the strangeness of quantum mechanics ("Betrayal"), I determined that you needed three people playing the game together, no less, to really get the paradoxical result.