>The MWI has no explanation for how this other infinity of possible states disappears into just two states. You still wind up with the collapse of the wave function--involving a lot of hand-waving or appealing to some nebulous property of consciousness.

The real issue here is the preferred basis problem, not an infinity of worlds: a single state vector can be decomposed many ways, and the bare math doesn't say which decomposition counts as "the branches." Decoherence picks it out: once the cat is entangled with its environment, the alive/dead decomposition becomes effectively unique and stable, through ordinary unitary dynamics. No collapse, no consciousness (that's von Neumann–Wigner, not Everett). MWI does have an open problem, but it's a different one: the Born rule, i.e. why |c|^2 should count as probability when every branch is real. Also, the normalization is |c1|^2 + |c2|^2 = 1.