If you don't understand physics, please don't expect this movie to teach you anything. It's new-age metaphysics dressed up as a science documentary.
Most of the actual scientists 'USED' in this movie (in many senses of the word 'used') have disavowed the way their quotes were used and the conclusions that were drawn - - basically the movie suggests that using TM will allow you to collapse waveforms favorably...It's just goofy.
However, the interpretation I hold to of SC involves the SUPERposition of states - the cat is both alive AND dead. So the damage is both a sword in your gullet AND a really depressing thought.
Taking it a bit further, we can employ the Many Worlds theory to great effect. When you are hit by a sword in combat, the universe splits into at least two separate universes. In one it was morale/emotional damage, in the other the blade stuck in your spleen. The two you's continue in their timelines...the problem is that you only know which timeline you are in when you are healed. "Oh, so that's what that annoying pointy sensation was"
The biggest problem with this is that the definition of 'observer' has to be strained to incredible levels. All those characters walking around with you have no idea what kind of damage you have - - so they don't count as observers.
The only true observer in this model is the healing effect itself. In addition, since some effects use your healing surges, and others can use those in possession of another character, this adds additional confusion. If you only have morale healers in the party, your group is typically missed by most weapons, which has led to a crippling malaise.
Can I design a new magic item for 4e?
Schroedinger's Handy Haversack: When Schroedinger's Handy Haversack is opened, you will see a motionless cat resting at the bottom, near a broken vial of some unknown liquid.
If you simply pull the cat out, it is dead from poison in the vial.
If you hit the cat with a healing effect that is based on wounds, the cat was near death, having cut itself badly on the glass shards, but you have healed it.
If you hit the cat with a healing effect based on morale, the cat was merely sulking because the vial contained merlot of inferior quality.