But lift any of those special restrictions, and simulation methods hit a sign problem [sign]. In particular, real-time evolution of quantum systems, which is what a quantum computer does by its very nature, poses in some sense the most difficult sign problem for approaches leveraging classical computing.
That's not a proof that classical algorithms can't become more capable, but it's almost certainly a question that must be answered system-by-system. The generic sign problem is NP-hard, so special-case reasoning is required.
[sign]: https://en.wikipedia.org/wiki/Numerical_sign_problem
There is not. Our existence as a field pretty much hinges on classical computers not being able to simulate all quantum mechanical problems efficiently. We imagine that designing quantum matter: https://cognitivemedium.com/qc-a-science, https://arxiv.org/abs/1508.02595 will be very useful in the scientific and technological sense and we don't think classical computers will ever fully stand up to that task.
> Breaking crypto, unless that falls too
If classical computers can simulate quantum efficiently then using quantum computers to break crypto also falls. Simulating quantum physics and factoring are in the same complexity class: https://en.wikipedia.org/wiki/BQP
I don't think this is quite accurate. It could be that many of the kinds of quantum simulations we care about can be done efficiently classically, even if the worst-case quantum simulations are classically intractable. Certainly, classical simulation algorithms are steadily improving.
Most people who work in this field doubt that every quantum simulation problem we care about will be classical tractable in practice, that is, non worst-case. If we believed that, we might as well give up and continue to use the robust, mature classical computers we have and will continue to have better instances of for the foreseeable future.