profpangloss, I do not entirely understand your position. Do you believe that the law of conservation of momentum holds in all reference frames, including non-inertial ones? Or do you believe that a reference frame in which the Earth remains stationary, even while subject to forces from the cart, is an inertial reference frame?
Anyway, here's a relevant
quote by Einstein. It's from his book on relativity, but this particular quote deals with classical mechanics. (What he calls a "Galileian system of co-ordinates" is what people in this thread are calling an "inertial reference frame".)
And here's a quote from pp. 15-16 of the book
Classical Mechanics, by John R. Taylor, which I happen to have in front of me:
Newton's laws cannot be true in all conceivable reference frames. To see this, consider just the first law and imagine a reference frame - we'll call it S - in which the first law is true. For example, if the frame S has its origin and axes fixed relative to the earth's surface, then, to an excellent approximation, the first law (the law of inertia) holds with respect to the frame S: A frictionless puck placed on a smooth horizontal surface is subject to zero force and, in accordance with the first law, it moves with constant velocity. Because the law of inertia holds, we call S an inertial frame. If we consider a second frame S' which is moving relative to S with constant velocity and is not rotating, then the same puck will also be observed to move with constant velocity relative to S'. That is, the frame S' is also inertial.
If, however, we consider a third frame S'' that is accelerating relative to S, then, as viewed from S'', the puck will be seen to be accelerating (in the opposite direction). Relative to the accelerating frame S'' the law of inertia does not hold, and we say that S'' is noninertial. I should emphasize that there is nothing mysterious about this result. Indeed it is a matter of experience. The frame S' could be a frame attached to a high-speed train traveling smoothly at constant speed along a straight track, and the frictionless puck, an ice cube place on the floor of the train, as in Figure 1.4. As seen from the train (frame S'), the ice cube is at rest and remains at rest, in accord with the first law. As seen from the ground (frame S), the ice cube is moving with the same velocity as the train and continues to do so, again in obedience to the first law. But now consider conducting the same experiment on a second train (frame S'') that is accelerating forward. As this train accelerates forward, the ice cube is left behind, and, relative to S'', the ice cube accelerates backward, even though subject to no net force. Clearly, the frame S'' is noninertial, and neither of the first two laws can hold in S''. A similar conclusion would hold if the frame S'' had been attached to a rotating merry-go-round. A frictionless puck, subject to zero net force, would not move in a straight line as seen in S'', and Newton's laws would not hold.
Evidently, Newton's two laws hold only in the special, inertial (nonaccelerating and nonrotating) reference frames.