"It is typical of these cases that an indeterminacy originally restricted to the atomic domain becomes transformed into macroscopic indeterminacy, which can then be resolved by direct observation." So as long as it is not observed, it is not resolved, which is the whole point; from what I understand, the point Schrodinger was making was we have no idea where this superpositioning is supposed to end. If it was indeed an argument then it fails because none of the Cat's logic sets up any sort of fallacy.
I don't know. From my own experiences, I haven't met a physicist yet that rejects the idea of Schrodinger's cat or quantum superposition. In fact, last I've heard, it was observed in laboratory conditions (via electromagnetic force on an electron cloud; the force was spread evenly across the entire cloud until the position of the electron was measured, after which the entire force was centered on the position). I also heard that someone was able to create a visible state of superposition using an object measured in hundreds of nanometers. That said, I never did follow up on those, and I don't have any proof to contribute to this discussion, so take all of that with a grain of salt.
In any event, I'm happy enough to leave the quantum discoveries to the quantum physicists.