Another physics layperson question here: Can this technique of studying a past state reversal apply to compromising one-way hash functions in some manner?
1. This particular work is explicitly relying on the fact that many quantum operations (including the type of time evolution they are considering) are a one-to-one map (not the one-to-many "irreversible" hash functions). Hence this work is explicitly not applicable.
2. Quantum computers do break some form of public key encryption, but this is a solved problem, as there are many other public key encryption protocols that are can not be broken by a quantum computer. Quantum computers do provide modest speedup in all types of brute force searches, like breaking symmetric encryption, but this is trivial to defend against by using a slightly bigger encryption key.