Cool. How do you deal with the double slit experiments if there is no interference? Aren't you back to a fully deterministic worldview, from the observer's perspective?
There is interference - my model is merely the many body schrodinger equation, after reduction to a two-particle NLS.
The key observation is that a measurement apparatus involves N particles, each moving a distance O(1). Thus, the distance (in configuration space) between both wavepackets (i.e., |cat dead, observer sad> and |cat alive, observer happy>) is O(sqrt(N)).
Because the two wavepackets are so far apart, they can't interfere. This is true with or without the observer, since the cat still has O(10^23) particles.
On the other hand, if there were no observer, and the system were merely an electron, the distance between wavepackets would be O(1) and interference would be possible.