Jeff,
You give a very clear and concise description of time as emergent phenomena, but you miss why physics has so much trouble making sense of it. By treating it as a measurement from one event to the next in a series, it only re-enforces the assumption of events as fundamental and not the dynamic processes creating them. As I point out in my entry, it's not that the present moves from past events to future ones, but that the changing configuration of what exists, turns future into past. Not the earth traveling a fourth dimension from yesterday to tomorrow, but tomorrow becoming yesterday because the earth rotates.
No blocktime and no multiworlds, because it is the collapse of probabilities which creates actualities.
Duration doesn't exist external to the present, as some meta-dimension, but is the situation of the present, between measured events.
It is a situation of physics' focus on precision over analysis coming around and biting it in the rear. "Shut up and calculate" doesn't always work.