> In your contrived example, you only know the right answer after considering all four possible combinations.
This is basically correct.
> That is a combinatorial explosion when there are only two choices to make.
But this isn't; you're being misled by the fact that 2×2 is equal to 2+2. The described algorithm is doing rows + columns amount of work, not rows × columns. If you had 14 guesses across and 3 guesses down, you'd know which ones to prune (according to this algorithm) after looking at 17 things. This is not a combinatorial explosion.