Oh yeah? Then what is the physical explanation for collapse?
Flash news. Nobody has ever produced any.
To the contrast we have lots of lines of evidence that an observer described by quantum mechanics should, upon observing a quantum experiment, be thrown into a superposition of observers. Each of which appears to have observed collapse. The notion is utterly repugnant to our biases so many reject the idea out of hand.
But as we create ever more complex but controlled systems, we can perform ever more elaborate experiments verifying that quantum mechanics works exactly as predicted. At some point if we take seriously the idea that the most successful scientific theory of all time is an accurate description of ourselves, then we have to accept that perhaps there is no collapse after all.
What's the alternative? Assuming unitary evolution and some fairly common-sense axioms about how we'd expect subjective experience to behave (things like: we never experience being in a branch that has amplitude zero; if we experience being in a given branch then we continue to be in that branch), the Born probabilities are the only model anyone's ever come up with for how our subjective experience should go. So what's there to explain?
This is were we have to invoke philosophy. Specifically how does consciousness interact with time? The common-sense thinking is that our soul is tied to our body and is traveling forward through time with it. Another way of thinking is that the soul is tied to a given position of the space-time-probability. It does not travel. You today is not the same as you tomorrow or yesterday. The you that observes spin up is not the same you as the one that observes spin down. Your soul is perceiving reality from a randomly chosen vantage point among all the possibilities with which have a compatible body. If we condition on those bodies belonging to experimenters who have observed frequencies, then we get the distribution.
This is one possibility anyway.
So under the assumption that the state encodes probabilities, state space assumptions and consistency with unitary evolution you get the Born rule. However this is not the same as the Born rule arising dynamically from unitary evolution alone.
It's true that from the perspective of an external superobserver the quantum state evolves to contain terms for each observer observation state. However since all interference observables turn out to be non-physical for macroscopic systems we get a superselection rule and so the probabilities for different macrostates are classical probabilities and thus reflect simple ignorance of the observer's post measurement state.
There's very little motivation for reading the quantum state "ontically" in the way you are doing.
This is what I never understood about MWI, in what physical sense can the many worlds be said to exist? Where are they in our universe? What direction would we have to travel to find them? Do they exert gravity on us? If not, then how can we claim that they exist in a physical sense?
So the universes all exist in the same place, since they are the same universe. Your idea of what an observation is, is just an eigenvalue of that corresponding operator.
But anyway, the other worlds do effect our world - that's why we get interference patterns in double slit experiments.
I think there’s also an experimental setup, whose name I forget, but which is essentially nested Schrödinger's cat setups: Alice is in a box, Bob is in a box which contains Alice’s box, Carol is outside; Alice goes into superposition of |Alice+> and |Alice->, Bob opens the box and Carol can now demonstrate that Bob is in a superposition of |observing Alice+> and |observing Alice-> instead of the combination of 100%|observing> and a superposition of |Alice+> and |Alice->.
Apparent wave function collapse can be explained using quantum decoherence.