Hrvoje (or "Harvey"), here is another recent paper about foundations of QM:
http://arxiv.org/abs/quant-ph/0609109
Could quantum mechanics be an approximation to another theory?
Lee Smolin
10 pages, no figures
"We consider the hypothesis that quantum mechanics is an approximation to another, cosmological theory, accurate only for the description of subsystems of the universe. Quantum theory is then to be derived from the cosmological theory by averaging over variables which are not internal to the subsystem, which may be considered non-local hidden variables. We find conditions for arriving at quantum mechanics through such a procedure..."
===sample quote===
...evidence that quantum mechanics is an approximation to
a deeper theory. Among the reasons for this belief are;
• The unresolved difficulties in extending quantum
theory to
cosmology. If this cannot be done then
one possible explanation is that quantum mechanics
does not in fact extend to the whole universe.
It must then be an approximation to a more fundamental
cosmological theory, which applies only
for small subsystems of the universe.
• The
difficulties in solving the measurement problem
in the context of a theory with a realistic ontology.
• The success of quantum information theory,which
reinforces the viewpoint that the quantum state
represents the information that observers have of
a system.
• The experimental evidence against the Bell inequalities
tells us that any theory quantum mechanics
is derived from must be non-local. It is
then natural to hypothesize that this non-local theory
is a cosmological theory, which is more adequate
than quantum mechanics for the investigation
of cosmological problems.
===endquote===