These folks ran out of their funding and need to renew their grants. For that purpose here's their progress report and no, tech is still quite far away. Watch out for same article title next year same time.
To be clear, there is nothing wrong with this. Some progress takes time and funders just need to know that folks are working hard at it.
The article gives no clue about this part. I have no idea if the optical domain can compute non-linear functions.
That's not how physics works, unfortunately.