I think now you throw out the baby with the bathwater. Not all coordinate times are unphysical. To come back to the original topic with the life-time dilation of the muons, this is a measurable physical effect. The amount muons from the cosmic radiation reaching us is larger than naively expected when not taking into account the relativistic space-time structure.
Of course, here are two times involved, but both times are physical and not mere coordinates without physical meaning. First the life-time, \tau of an unstable particle is defined in its rest frame. This is just a convenient convention, because it uniquely defines an intrinsic parameter of the particle in a uniquely defined reference frame which is indeed preferred by the physical situation to look at this particle. The second time is the eigentime of an observer in an inertial frame (discussing the special-relativistic case here), which is at the same time the coordinate time of this frame. It's a well defined physical time, measurable by a clock at rest relative to the observer.
The life-time of the particle, defined in its rest frame can be evaluated as its proper time. In terms of the coordinate time of the observer it's given by
\tau=\int \mathrm{d} t \sqrt{\dot{x}^{\mu} \dot{x}_{\nu}},
which is an invariant.
The most simple case is a muon in uniform motion. Then you have (setting c=1 as is natural in relativity and using the west-coast convention, most common in HEP)
\dot{x}_{\mu} \dot{x}^{\mu}=1-\dot{x}^2=1-v^2.
Thus, the proper time (setting the time origin such that t=0 \; \Leftrightarrow \; \tau=0, you get
\tau=\sqrt{1-v^2} t.
So the measured mean-life time of the muon of the observer is
t=\frac{\tau}{\sqrt{1-v^2}}=\gamma \tau,
i.e., longer by the Lorentz time-dilation factor.
As stressed already at the beginning of this thread this is a very precisely measured effect of relativistic kinematics. A recent measurement by my "Alma Mater", GSI(=Gesellschaft für Schwerionenforschung=Helmholtz institute of Heavy-Ion Research) in Darmstadt, Germany, made it to the public-science media:
http://phys.org/news/2014-09-ions-relativistic-dilation-precision.html
The research article can be found here:
http://dx.doi.org/10.1103/PhysRevLett.113.120405