There are many responses to the violation of Bell inequalities. This issue is quite subtle and has been picked apart in fine detail by physicists and philosophers. There are two main groups of responses. The first tries to maintain local realism by pointing out loopholes in the proof of Bell's theorem or the actual experimental tests that have been performed. Most physicists (but not everyone) feel that these arguments are ad-hoc and that they would require a strange "conspiracy" in nature to explain the current results. Here are some of these responses:
1. There has been no loophole-free experimental test of Bell's inequalities. If one is ever performed, it will fail to show quantum correlations. Experimentalists believe they will be able to perform a loophole free test in the next few years. The loopholes include
- detection efficiency: All experimental tests do not detect 100% the particle pairs emitted. It is uaually assumed that the particles detected represent a "fair sample". The problem with this was first pointed out by Pearle (Phys. Rev. D. 2 1418-1425 (1970)).
- causality: The choice of measurement settings should be "truly random" and they should be made at spakelike separation from the other measurement. This does not apply to all experimental tests and unfortunately it does not apply to most of the ones with high detection efficiency.
2. There is something wrong with the assumptions in Bell's theorem. There are numerous get-outs that can be invoked. For example, it is usually assumed that the experimental settings can be controlled. This requires an assumption of free-will of the experimenter, or at least that there are physical processes independent of the Bell experiment that can be used as an effective source of randomness (
http://xxx.arxiv.org/abs/quant-ph/0204169 ). One can simply deny that this is the case. Another interesting one is that the usual proof assumes that the sample spaces involved are measurable sets. Toy models can be constructed that reproduce the Bell correlations using non-measurable sets, but these are rather ad hoc (http://edelstein.huji.ac.il/staff/pitowsky/Itamar%20Pitowsky_files/Paper%2001.pdf ).
The second group of responses accepts that Bell's theorem is true. Therefore, either locality or realism has to be false.
3. Realism is true, but the universe is non-local. It is possible to construct hidden variable theories that are explicitly non-local and contextual, but are nontheless fairly natural looking. Bohmian mechanics is the most famous example of this (
http://plato.stanford.edu/entries/qm-bohm/ ).
4. Retreat into operationalism. Quantum mechanics is just a calculus for computing probabilities of measurement outcomes. It says nothing about an underlying reality, which may not even exist, and therefore nothing about its locality. This is similar to the standard Copenhagen response, but to me it seems to beg more questions than it answers. For example, what exactly constitutes a measurement?
5. Consult one of the multitude of
interpretations of quantum mechanics and see what it has to say on the matter. Most of them require you to accept at least one dubious idea, but at least you can choose exactly where you want to put the dodgy bit. Visit
http://plato.stanford.edu and take your pick.
Note, there are also some get-outs for the Kochen-Specker theorem, involving the fact that all measurements have finite precision
http://xxx.arxiv.org/abs/quant-ph/0309017.