5 years ago (when I took a couple of courses in QC) there were basically 2 quantum algorithms -- Shor's factorization and Grover's search. The former speeds up integer factorization (and discrete logarithm) and brings it to polynomial time, and the later speeds up search from O(n) to O(sqrt(n)).
So just being able to quickly factor integers breaks a lot of encryption algorithms, and a faster search would really help with data processing.
One of the main difficulty with quantum computers is quantum de-coherence. Qubits when they are entangled must be isolated from the outside environment until the final result measurement is taken. That is what is preventing the creation of large, multi-qubit computers. For example, it would be useful to have a 1024 qubit machine to simultaneously represent all 1024 bit states.
Quantum error correction might solve the problem, but we are yet to see practical quantum computers.