If the O(n^3) schoolbook multiplication were the best that could be done, then I'd totally agree that "it's simply the nature of matrices to have a bulky multiplication process". Yet there's a whole series of algorithms (from the Strassen algorithm onward) that use ever-more-clever ways to recursively batch things up and decrease the asymptotic complexity, most of which aren't remotely practical. And for all I know, it could go on forever down to O(n^(2+ε)). Overall, I hate not being able to get a straight answer for "how hard is it, really".