Expanding on Mark S's answer with some math:
Let's take Aaronson's example, where you are applying the following unitary $U$ twice to a qbit initialized to $|0\rangle$:
$$
U =
\begin{bmatrix}
\frac{1}{\sqrt{2}} & \frac{-1}{\sqrt{2}} \\
\frac{1}{\sqrt{2}} & \frac{1}{\sqrt{2}} \\
\end{bmatrix}
$$
The conventional (Schrödinger) picture would represent this computation as follows:
$$
UU|0\rangle =
\begin{bmatrix}
\frac{1}{\sqrt{2}} & \frac{-1}{\sqrt{2}} \\
\frac{1}{\sqrt{2}} & \frac{1}{\sqrt{2}} \\
\end{bmatrix}
\begin{bmatrix}
\frac{1}{\sqrt{2}} & \frac{-1}{\sqrt{2}} \\
\frac{1}{\sqrt{2}} & \frac{1}{\sqrt{2}} \\
\end{bmatrix}
\begin{bmatrix}
1 \\ 0
\end{bmatrix} =
\begin{bmatrix}
\frac{1}{\sqrt{2}} & \frac{-1}{\sqrt{2}} \\
\frac{1}{\sqrt{2}} & \frac{1}{\sqrt{2}} \\
\end{bmatrix}
\begin{bmatrix}
\frac{1}{\sqrt{2}} \\ \frac{1}{\sqrt{2}}
\end{bmatrix} =
\begin{bmatrix}
0 \\ 1
\end{bmatrix} =
|1\rangle
$$
Suppose you didn't care about the value of the entire state vector, but rather just the value of a single amplitude. Could you calculate this amplitude without keeping the entire $2^n$-sized state vector around in memory? Turns out yes, you can, with the the Feynman (or sum-over-paths) picture. Consider the following equation:
$$
|x\rangle = U_m \ldots U_1|\psi\rangle
$$
How do we calculate the value of the final amplitude $i$, $|x\rangle[i]$? It's a simple recursive algorithm. Let's define the recursive function $f(|\psi\rangle, U, i)$, which returns the value of amplitude $i$ after the (1-qbit (2x2) or 2-qbit (4x4)) unitary operations in $U$ are applied to initial state $|\psi\rangle$:
- Base case: $U = [\ ]$, return $|\psi\rangle[i]$
- General case: $U = [U_m, \ldots, U_{1}]$, $U_m$ is a 1-qbit 2x2 matrix: in the $i$th row of the full matrix $M = \mathbb{I}_2 \otimes \ldots \otimes U_m \otimes \ldots \otimes \mathbb{I_2}$ (which would be multiplied against the state vector) there will be at most two nonzero entries at some indices $a$ and $b$; this means we need the amplitudes at index $a$ and $b$ for the state prior to $U_m$ being applied, so return:
$$
M[i,a]\cdot f(|\psi\rangle, Tail(U), a) + M[i,b] \cdot f(|\psi\rangle, Tail(U), b)
$$
- General case: $U = [U_m, \ldots, U_{1}]$, $U_m$ is a 2-qbit 4x4 matrix: in the $i$th row of the full matrix $M = \mathbb{I}_2 \otimes \ldots \otimes U_m \otimes \ldots \otimes \mathbb{I_2}$ (which would be multiplied against the state vector) there will be at most four nonzero entries at some indices $a$, $b$, $c$, and $d$; this means we need the amplitudes at index $a$, $b$, $c$, and $d$ for the state prior to $U_m$ being applied, so return:
$$
M[i,a]\cdot f(|\psi\rangle, Tail(U), a) + M[i,b] \cdot f(|\psi\rangle, Tail(U), b) + M[i,c] \cdot f(|\psi\rangle, Tail(U), c) + M[i,d] \cdot f(|\psi\rangle, Tail(U), d)
$$
For our example above, this looks as follows; calculating the value of $f(|0\rangle, [U, U], 2)$ (aka the final amplitude for state $|1\rangle$):
$$
f(|0\rangle, [U, U], 2) = U[2,1] f(|0\rangle, [U], 1) + U[2,2] f(|0\rangle, [U], 2)
$$
$$
f(|0\rangle, [U, U], 2) = \frac{1}{\sqrt{2}} f(|0\rangle, [U], 1) + \frac{1}{\sqrt{2}} f(|0\rangle, [U], 2)
$$
$$
f(|0\rangle, [U, U], 2) = \frac{1}{\sqrt{2}} \left( \frac{1}{\sqrt{2}} f(|0\rangle, [\ ], 1) + \frac{-1}{\sqrt{2}} f(|0\rangle, [\ ], 2) \right) + \frac{1}{\sqrt{2}} f(|0\rangle, [U], 2)
$$
$$
f(|0\rangle, [U, U], 2) = \frac{1}{\sqrt{2}} \left( \frac{1}{\sqrt{2}} \cdot 1 + \frac{-1}{\sqrt{2}} \cdot 0 \right) + \frac{1}{\sqrt{2}} f(|0\rangle, [U], 2)
$$
$$
f(|0\rangle, [U, U], 2) = \frac{1}{2}+ \frac{1}{\sqrt{2}} \left( \frac{1}{\sqrt{2}} f(|0\rangle, [\ ], 1) + \frac{1}{\sqrt{2}} f(|0\rangle, [\ ], 2) \right)
$$
$$
f(|0\rangle, [U, U], 2) = \frac{1}{2}+ \frac{1}{\sqrt{2}} \left( \frac{1}{\sqrt{2}} \cdot 1 + \frac{1}{\sqrt{2}} \cdot 0 \right)
$$
$$
f(|0\rangle, [U, U], 2) = 1
$$
Given $m$ unitary operations on $n$ qbits, this will clearly take $O(4^m)$ time if every operation is a two-qbit 4x4 matrix, since it will lead to four additional recursive calls at every level. It will take at least $O(m)$ space, since the recursive call stack will grow to length proportional to $m$ (other sources say $O(m + n)$ but I'm not sure where the $n$ term comes in).
It's somewhat unclear how you could efficiently determine the indices of amplitudes affected by the operator at each recursive level, but I'm sure if I thought about it hard enough there'd be some obvious trick. I'll also have to think some more about how this recursive algorithm relates to the branching diagram up above.