Matt,
Isn't that just the application of the hidden variable interpretation to the question? Apply the multiple universe interpretation, and the cat splits into two, one dead and one alive. One might argue (though this isn't one of the standard interpretations as I understand it) that the cat is either dead or alive because God is watching (We aren't gods but there is a god kind of thing). But what happens when God blinks?
Anyway, while I'm not sure of Schrodinger's intentions, the problem shows, not that we should necessarily favor our common sense intuitions over and above any particular interpretation, but that the quantum world, our theory for the quantum world, goes directly against them. According to the math, the cat is 50 percent alive and 50 percent dead at the same time. Schrodinger may indeed think that to say this is absurd but that's how the theory actually works. We describe any quantum entity as a wave function until we look at it, then we see it as a particle. Where and when does the wave function collapse is anybody's guess. The trick is that if you imagine that the entity is just a particle all the time, you can't explain the results of the experiments, you
have to see it as a wave until you look at it.
So, the reverse is just as possible. The cat really is fifty percent alive and fifty percent dead. It's just that our current understanding of the world prohibits that from seeming a viable option.