What does an SG magnet actually do? What it does not do is "observe" the spin of the particle. The operation of the SG magnet, by itself, is a unitary, reversible operation and does not amount to a measurement of anything (to put it another way, it does not cause decoherence). All the SG magnet actually does is to entangle the spin and momentum degrees of freedom of the particles passing through it, so that one output beam corresponds to "up" spin and the other output beam corresponds to "down" spin.
That means that in order to make a measurement of "spin" using an SG magnet, one needs to add a detector that tells which output beam each particle came out in. The photo plate is the usual detector that is used. But that means that, in the actual experiment as it is actually run, the actual measurement--the thing that causes decoherence and makes the process irreversible--is the flash on the photo plate. That flash directly measures which output beam the particle came out in--i.e., its momentum. The fact that the SG magnet entangled momentum and spin then let's us deduce the spin from the measured momentum. Or, to put it another way, since momentum and spin are entangled, decohering the momentum degree of freedom also decoheres the spin degree of freedom and thereby amounts to a "measurement" of spin, but an indirect one.