Until last week [1], it was an open problem whether every function with n inputs that is computable in nondeterministic time 2^O(n) could also be computed with a two-layer circuit using only O(n) gates (that is, a deep net with just one hidden layer with a linear number of gates). This is an embarrassing state of knowledge.
Now we know the following slightly less embarrassing thing: there is an explicit function, computable in linear time, that needs at least n^3/2 gates in a two-layer deep net (modulo some log(n) factors), and another function that needs n^3/2 gates in a three-layer deep net (with the additional restriction that the output gate is a majority vote of the previous layer).
This is still a long way away from truly understanding the representational power of deep nets, but it's the first general progress that has been made since the early 90's.