This is wrong, they do collapse, you can test this using the double slit experiment. No human has to be there for the wavefunction to collapse and thus break entanglement.
If what you said was true then this wouldn't be a part of physics, physics is only about stuff we can measure not nonsense that has no meaning.
Theoretically, as far as it is known today, it is possible for a quantum system of any size, and at any temperature, to remain in a coherent state, if it could be perfectly isolated from the rest of the world.
Any limits to this process, where a perfectly isolated system would undergo wave function collapse without any outside interference, would be a Nobel-prize worthy discovery and would constitute a new theory of physics: quantum mechanics and QFT allow no such process.
Edit: and the double slit experiment is unrelated - the screen and the slit are noisy classical systems that are not in any way isolated from the rest of the classical world. In principle, if you performed the experiment using a screen and slits made entirely of atoms entangled with the emitter, and isolated perfectly from the rest of the world and the CMB and everything, you'd get a different result: this is what QM predicts.
Double slit experiments shows collapse happens without any outside interference, nothing outside of the room has to do anything for the resulting measurements to show collapse happened. You can then afterwards enter the room, look at the recorded data and see that collapses did happen.
So you must have misunderstood what those theories says about collapses. They don't say exactly when collapses happens or what causes them, that is the unsolved problem, but we can know that they do happen.
But what if instead you had a screen that was itself a quantum system? You'd then use the Schrodinger equation without any collapse (without the Born rule) to describe the results. You'd have to perform other measurements on the quantum screen to obtain a classical result that can be interpreted, of course. But nothing in QM says that there is some size limit, so in principle it should be possible to prepare a quantum system of any size, including the size of a typical double slit experiment screen, that doesn't collapse.
Maybe we will even eventually find the ultimate model, a model that describes every aspect of the world perfectly, even though it is not obviously clear how we would determine that we did not miss some aspect of the universe in our models. But even then the map would not be the territory, the model would not be the universe or a piece of it. Imagine a wave function would perfectly describe an electron, would we be justified to say that an electron is a wave function? No, because for them to be the same thing, it is not sufficient that the wave function has all the properties of the electron, it would also have to have only the properties of the electron. But the wave function is an equation, I can write it down or square it, things I can most certainly not do with the electron.
So the wave function is of course only a mathematical description of a quantum system and not a real thing out there in the universe. But that is not the problem, the problem is that we have two seemingly contradictory descriptions of quantum systems. We have the Schrödinger equation describing the unitary evolution of isolated quantum systems and it works really well. But we also have the Born rule and the collapse postulate which tell us the probability distribution of measurement outcomes and how measurement changes the state into the measured Eigenstate, a non-unitary change, and this also works really well. But there is the problem, on the one hand a measurement - whatever that exactly is - seems to change the state non-unitarily but on the other hand a quantum system together with a measurement device is just a bigger quantum system and should therefore evolve unitarily. Something has to give.
As you say, that is very unsatisfying, but it was also not a complete roadblock, shut up and calculate worked pretty well. But I would not confidently declare that this does not hold us back at all, who knows what progress can be unlocked by solving the issue? It might of course also be mostly inconsequential but I guess that is something we will only find out after the fact.
[1] Or fluids if you want to be pedantic.
In terms of what we may/not be missing out on, I say that because it seems few of the possibilities remaining after a century of investigation (many worlds, relational/information based approaches, etc) contain any new physics or scientific insight.
Eg if we could somehow tell that MW or pilot wave theory is "correct", we would still have nothing to do but shut up and calculate the same things, no?
If unitary evolution continues in some sense, we would still need to throw factors away in order for the theory to remain predictive to us.
Particles are only observed to be in a single place at a single time. My understanding is that it may be that we lose the perspective necessary to see them elsewhere, since we are embedded in the same eigenstate (or something close to it). But the task of science is confined to observables. I question, what are the scientific questions that collapse postulate holds back from being solved?
Unitary evolution can destroy superposition of the small subsystem by introducing negligible amount of superposition into large system.
In Schroedinger cat experiment, the evolution is not thermalization but rather entangling the whole cat with atom state. I don't think we're really puzzled about it now, since we know that macroscopic objects can be in superposition. So cat, theoretically, can be in superposition of alive and dead until measured. I don't think there is any contradiction or confusion here physics-wise.