This question is from 2013, so maybe this is too late as being a relevant answer, but I am going to write it anyway. The goal in this answer is to address how some proponents of the Everettian (many-worlds) interpretation can claim the preferred basis problem as being solved. In the past, I have been very skeptical of this claim, but I am now starting to really understand the claim. I would have written it as a research paper if I could find a way to do that but it seems useless to write this as a research paper, hence this answer for the community benefit.
First, on a fairly general criticism of any theory of the preferred basis. Suppose you have the universe consisting of two subsystem $S$ and $A$, with Hilbert space factorization $\mathcal{H} \equiv \mathcal{H}_S \otimes \mathcal{H}_A$ and $|\psi\rangle \in \mathcal{H}$. It is well-known that the Schmidt (which is largely SVD) decomposition of $|\psi\rangle$ may not be unique even though singular values are unique. You can find one example in this paper by Meir Hemmo and Orly Shenker - see also this YouTube video, where Meir Hemmo explains their critique in the paper.
So the Schmidt decomposition is not enough, and indeed the einselection (environment-assisted superselection) theory of Wojciech Zurek does not actually rely on the Schmidt decomposition. As Zurek notes in the linked YouTube video, it is already known that quantum states alone are insufficient to determine the preferred basis. We need a physical theory to determine the preferred basis, which breaks what Meir Hemmo calls as the global basis symmetry and what may alternatively refered to as basis invariance or basis irrelevance in physics.
The einselection theory exactly does that, which relies on (to simplify heavily) the three-subsystem Hilbert space factorization: $\mathcal{H} = \mathcal{H}_S \otimes \mathcal{H}_A \otimes \mathcal{H}_E$. Environment $E$ is necessary to force one particular pointer basis via interaction Hamiltonian $H_{AE}$, which is between $A$ and $E$. In particular, up to a reasonable approximation, we could say that out of all possible Schmidt decompositions, $E$ picks out which decomposition determines the preferred basis via $[H_{AE},O] = 0$, where $O$ is the pointer observable for $A$. This preferred basis choice preserve probability information for each outcome of $SA$ even when interacting with $E$ over time.
Again, the upshot is that this is a theory of the preferred basis that relies on the interaction Hamiltonian, instead of individual quantum states. Furthermore, decoherence is just one aspect of the einselection theory. So according to the Zurek-style Everettian interpretation, the preferred basis problem is solved. Combined with a theory of collapse in the Everettian interpretation that considers it as arising out of entanglement and practically irreversible decoherence, the only problem that remains in the Everettian interpretation is how the Born rule is justified in the interpretation, which is an entirely different question at least for the Everettian interpretation proponents.
Now the einselection theory of preferred basis is not without a potentially valid critique. For some reason I cannot find papers stating this, but the point is that in the einselection theory, decoherence is never completely achieved, so it is wrong to ignore small off-diagonal entries of density matrices in the preferred basis. This comes from the issue that the einselection theory is a dynamic theory of preferred basis, not a theory that depends on quantum states. The pointer basis may not equal to a Schmidt decomposition basis for each quantum state at each time. In some cases, these off-diagonal entries eventually have significant influences on how the universe evolves, but this is not what our universe seems to be like. Whether this argument is convincing depends on who you ask.
You could also question why probability (coefficient) information being preserved can settle the pointer basis. Couldn't it be possible that some preferred measurement basis allows $E$ to change outcome probability over time? Why should this be impossible? There is this thing about whether this question is even valid, and another thing about how this is addressed, assuming its validity. Zurek has tried to answer this question with his vision of quantum Darwinism, which relies on information redundancy across subsystems. For this point, I have not been fully convinced, but you might be.
There is also the naturalness problem as well. For any interpretation of quantum mechanics, the einselection theory is a physical theory in sense that for some interaction Hamiltonian, it chooses what basis is to be preferred. But this physical theory is very different from other physical theories. This problem becomes worse in the Everettian interpretation. We are supposed to believe in the Everettian interpretation because it is most straightforward interpretation out of quantum mechanics mathematics (canonical or path integral formalism). Yet we now face this extra theory that chooses why some basis is to be preferred. Again, Zurek answers this with quantum Darwinism - the privileged basis is not physical but more of the one that is most information-wise redundant. But while I have become more convinced of the approach, there are still loads of issues. For example, what privileges a particular Hilbert space factorization? Can information advantage ever be a reason for the privileged basis or the privileged Hilbet space factorization?
Or one can ask: is locality really justified as a reason for the privileged basis? If so, could not this be question-begging to the past? Is spacetime more fundamental than we think in the past? Why do we seem to observe the universe in a more localized basis than what quantum mechanics seems to suggest? Can quantum field theory address this answer? Does an algebraic quantum field theory of local observables address this question? Effective Hamiltonians that pick out the emergent privileged basis are different from the fundamental Hamiltonian, and in such a case, does the einselection theory really work? Is the privileged basis relative to an observer? In such a case, what does an observer even mean in the Everettian interpretation? All these questions suggest that the original vision of the Everettian interpretation that takes mathematics of quantum mechanics as it is has largely been lost in the modern variants of the Everettian interpretation. If so, what would be the reason to prefer it over others?
For the question of why the Everettian interpretation may still be preferred despite loss of the original vision, I think it largely comes down to providing a theory of collapse in terms of entanglement and decoherence without violating unitary evolution. Additionally, the Everettian interpretation brings the measurement process directly into mathematics of quantum mechanics, which squares well with the vision that quantum mechanics should capture everything about the universe.
I also think the einselection theory surprisingly seems to work well with the Copenhagen interpretation, where we do not have to address the question of why measurements have to be in a particular basis, such as why probability information has to be preserved in the preferred basis when entangled with environment. For the old-style Copenhagen interpretation, collapse occurs instantaneously, so no issue of probability information being preserved over time. The einselection theory simply picks out why some measurement apparatus has a privileged basis, and collapse occurs in that basis. Thus, it seems surprising that the einselection theory is not much mentioned with regards to the Copenhagen interpretation.
There are other criticisms of the einselection theory as well, but the point is that a criticism of some preferred basis theory based solely on quantum states (basis invariance, basis symmetry) is very likely a bad critique, and so many people, including myself in the past, have fallen into such traps.