I think quantum computers will be useful for some applications (maybe even many) and commercially available within the next decade or two, I just don’t think cryptographic breaks will be possible on them until they advance well beyond whatever is first brought to market. You need logical qubits for polynomial-time cryptanalysis of RSA, and many of them. To get these logical qubits, you need so many more physical qubits that it’s not really productive to map our current records (~50 qubits) to what we’d need. In fact, I predict we’ll get to quantum cryptanalysis via a paradigm shift that approaches the problem in a fundamentally different way long before we master the requisite error correction to have enough physical and logical qubits necessary under the current paradigm.
Contemporary research is predominantly concerned with improving computability efficiency or security proofs for underlying complexity characteristics.
That's what I meant above; I apologize for I should have been more clear in my wording.
In other words, for some lattice problems, we can prove that breaking the cryptosystem is equivalent to breaking every instance of the lattice problem, but factoring problems only guarantee that breaking the cryptosystem is equivalent to breaking a subset of problems from some distibution. The former is a much stronger security assumption (though in practice this comes with its own set of challenges).
It’s an exciting area of research.
From my reading most crytographers think it's is secure. So if you need it now. You could probably get away with using it. However, one should have a decent explanation to why use a less well known algorithm. It's probably had less eyes looking at so a major flaw/attack could exists, but it's not if one does exist.
The real issue, as you touched on, is key size. There are production deployments of the cryptosystem, but it’s actually a bit worse than your numbers if you’re looking for post-quantum resistance. In the post-quantum secure setting, McEliece uses public keys that have an upper bound of over 1MB (around 8.5 million bites specifically) in order to achieve 128-bit security.
Fortunatly McEliece is not the only proposal we have, and error correcting codes aren’t the only computational problem being studied. We also have credible proposals from lattices, hashes, multivariate polynomial equations and (most recently) supersingular elliptic curve isogenies.
For proprietary protocols the "newiness" of pq-crypto doesn't seem to be a big problem per se, just use curve hardening (kdf(ECDH || pq-kex)) in case the pq-crypto is broken (either due to implementation defects or cryptanalysis).
And yes - SIDH is also attractive because of the small key sizes. But it’s also significantly slower than lattice-based key exchange using something like Learning With Errors (LWE). In practice the decision comes down to time versus space constraints: if your application is space-poor and time-rich, SIDH is a good proposal for key exchange. This looks especially nice in the context of IoT devices. But if your application is space-rich and time-poor, SIDH looks less attractive in favor of other options.