However the bigger insight is that deep networks aren't learning high level features. This paper has very strong evidence that deep networks are just more fancy statistical models as opposed to developing more abstract representations. When if you make network more deeper, you are just developing more higher capacity models as opposed to more higher level features. This is quite damning... If you were hoping current form of deep learning will open the door to AGI, your hopes should be shattered by now.
Some of the things to investigate are (1) can proper regularization help turn this around (for example, forcing gradients to be as small as possible) (2) are there any other architectures using gradient descent that might actually develop abstract features.
This is definitely crisis time in the field and therefore more interesting than ever :).