How is the an encryption algorithm's security dependent on factoring large numbers?
The missing phrase is "public-key", as in "How is the public key encryption algorithm's security..."
In modern cryptography there two major categories of ciphers, symmetric (secret key) and public-key (which uses a public/private key pair).
Within each category, you will find the key sizes relatively close. For public-key systems like RSA and DH/DSA, both used in OpenPGP e-mail encryption, common key sizes are 1024-bit and larger these days (early 2010). This has to do with the mathematical requirements of suitable keys used to encryption and decrypt messages. For RSA, in short, it is many time easier to generate a factor of two random large prime numbers and do multiplication with them, compared to factoring of very large number that has no small factors. As you've discovered the factoring of very large numbers is the "problem" or approach needed to break RSA via brute force.
Diffie-Hellman / Digital Signature Algorithm (DH/DSA) are based on a different mathematical problem, calculating discrete logarithms.
Due to properties of the public and private key pairs, the search space is limited to factors of large primes numbers, which becomes incredibly sparse, so it makes sense to try to be far more intelligent then simply trying to factor every very large number.
Whereas with symmetric ciphers like AES, RC6, RC4, Twofish, DES and Triple-DES, these algorithms use a random key of a given bit length. Any non-trivial (i.e. 0x000...000 may be a poor key choice) random key is suitable. So these systems, if there is no attack against the algorithm itself, you can simply search brute force through the key space (i.e. try all 2^256 possible keys) to decrypt a message without the secret key. Since any key is suitable, the density of keys is 2^256.
I'm ignoring Quantum Computing (theoretic and practical), mainly because a) I can't give a solid answer, and b) it represents a large paradigm shift that turns much applied mathematics and computer science of computational complexity potentially on its head, that basic understanding is still a moving target. Oh, and most of my enemies don't have a quantum computer yet. :)
I hope that explains the general difference between the two types of crypto systems, such as RSA and AES.
Sidebar: Cryptography is a rich and complex topic, where the basics may be simple enough to understand, and even write a naive ("textbook") implementation, the complex subtleties of a secure implementation makes it best for programmers who are not cryptography experts to use high level crypto-systems including using well-known standard protocols to improve your chances that the cryptography of a system is not the exploitable flaw in a system.