The idea was originally known as the Theory of the Universal Wave Function, which makes a lot more sense as long as you're unafraid of mathematics.
There is no "splitting off" of universes; I agree with you that that wouldn't make much sense. Instead, the observer simply becomes entangled with the observed physical system during the measurement process. This entanglement is a gradual process, though it certainly happens very quickly.
This basically pushes all the weirdness out of quantum mechanics and into the fact that we just don't understand consciousness very well. Why don't we perceive the full linear combination of quantum states? And can we somehow map our subjective experience of probability and statistics to what happens in the Universal Wave Function? It's much easier to ignore that weirdness, since we're used to ignoring it in our daily lives anyway. It's also a more parsimonious interpretation than the others, because it doesn't postulate anything special about us (the "observers").
(This does not mean that consciousness is a quantum or even meta-physical phenomenon. Quite the opposite, actually: I find that the mystery lies more in why consciousness is unable to perceive quantum states despite existing in a universe that has quantum physics.)
My personal belief is that it is because consciousness is a classical information-processing phenomenon. In other words, we can only directly perceive things that can be described as real numbers rather than complex numbers because we are Turing machines, and Turing machines are classical.
This fits with a Hofstadter-like perspective that consciousness is about "strange loops", where we somehow repeatedly evaluate simplified models of the world including yourself. Doing such repeated evaluations requires (at least partial) "cloning" of the state of the world outside for the purpose of evaluation, and cloning quantum states is impossible, hence consciousness must be a classical phenomenon.
I like that line of argument.
Note: I wouldn't state it as being unable to perceive things that can be described as complex numbers, but rather complex linear combinations.
But there is a version of it which does make sense: https://arxiv.org/abs/0903.2211
The basic question for all theories is, "what is fundamentally real?" and the wave function of quantum mechanics just doesn't work in that role. This is why Bohmian mechanics adds particles; that is what is real in that theory.
But to make a MW theory, one can integrate out the wave function to create a mass density function on 3-space. In any given instance, this is a mess and useless. But if you watch it evolve, then you could see multiple different stories evolving. And those are the different "worlds".
There is no splitting, just regimes that are no longer relevant.
There's little to understand: at its core, Many Worlds is real close to "shut up and calculate". The only significant assumption is that the wave function as described by the math is real. And when the math says there are 2 non-interacting blobs, well, this translates to 2 universes.
That's about it.
As for why people seems to reject it instinctively, it's probably because our subjective experience is linear —or mono-threaded. However, linear histories aren't contradictory with trees. Imagine a Git History that never merges: each leaf is the product of a linear set of modifications, a perfectly clean history. From that final commit's perspective, other branches might as well not exist. You'd need merges to break that illusion, and our universe doesn't have macro-merges —we only observe them at a very small scale, for instance with photon interference.
But what does that mean? What is the mapping to my experience? Is it that if the wave function is non-zero at a configuration point, then the configuration is realized as an actual universe? One big problem with this is that wave functions can be non-zero at all configuration points and the dispersive nature of the Laplacian tends to make that happen.
So then it becomes one of size of |psi|^2? Is there a cutoff for considering that to be real? Having a probability of something is needed to deal with this, but it is not clear to me what the probability would correspond to here.
In BM, the probability is that of finding particles in some region. In collapse theories, it is the probability of collapsing to a specific state.
As for the Git History, my above concern could be phrased as a history in which all possible streams of texts are possible though maybe some have a large font-size. This is library of babel kind of stuff. How is the evolution of the text that I consider myself to be a part of handled? How are nearby configurations connected by the evolution of a wave function?
Also, macro-mergers are not theoretically ruled out; it is practically ruled out.
Let's say that I convinced you that 2 non-interacting blobs did not objectively evolve to occur, but rather a smearing over all. Would this break your interpretation?
If I understand correctly, what you speak of should actually be observable —you could make falsifiable predictions about it. That would break more than my interpretation, I think.
That is to say, where is the magnitude of the wave function being used in this interpretation?
That is a really excellent analogy. It is also important to understand that there is a reason we don't have "macro merges", and that is because some irreversible process is required to create classical information, which is what we (the entities having this conversation) are actually made of. See:
http://blog.rongarret.info/2014/10/parallel-universes-and-ar...
Note: I understand that a wave function of just 3 photons or photons that travel in straight lines could not cause an interference pattern.