Reasoning
The thesis is widely considered to be a good rule of thumb for real-life problems. Typical input lengths that users and programmers are interested in are between 100 and 1,000,000, approximately. Consider an input length of n=100 and a polynomial algorithm whose running time is n2. This is a typical running time for a polynomial algorithm. (See the "Objections" section for a discussion of atypical running times.) The number of steps that it will require, for n=100, is 1002=10000. A typical CPU will be able to do approximately 109 operations per second (this is extremely simplified). So this algorithm will finish on the order of (10000 ÷109) = .00001 seconds. A running time of .00001 seconds is reasonable, and that's why this is called a practical algorithm. The same algorithm with an input length of 1,000,000 will take on the order of 17 minutes, which is also a reasonable time for most (non-real-time) applications.
Meanwhile, an algorithm that runs in exponential time might have a running time of 2n. The number of operations that it will require, for n=100, is 2100. It will take (2100 ÷ 109) ≈ 1.3×1021 seconds, which is (1.3×1021 ÷ 31556926) ≈ 4.1×1013 years. The largest problem this algorithm could solve in a day would have n=46, which seems very small.
Read more about this topic: Cobham's Thesis
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