No ... you're the one who seems to believe that changing the frame of reference changes the physical reality of the situation.
I didn't mention velocity (other than specifying the directions the cars moved in relation to each other) and I didn't mention kinetic energy.
What you ignored,
is the problem.
But, I will now.
This will be easy.
"Two cars moving in opposite directions, so the same speeds, but different velocities of 60mph, remain that way, no matter how they are observed." is total gibberish - "60 mph" is a measure of speed, not velocity, and speed is always relative to a frame of reference.
"... shows up as the doubling of the KE" - The "doubling of the KE" is real when you change the observation point, but it doesn't change the outcome of the collision.
Still free energy isn't it?. And it does change the outcome, unless you think that KE, the energy of impact, has no influence on the impact.
No matter how you observer the situation, the kinetic energy converted to "crunch" is the same when the two cars hit. The difference in observation,
Energy is conserved, so it either remains stored as KE in the remnants or goes has heat and work of crunching. Twice as much energy means a lot more work can be done and or the remnants have more KE than they began with.
however, affects how much kinetic energy you see in the result. In the case of an observer seeing the two cars crashing to a stop, there is no kinetic energy remaining, because the vehicles have stopped
So twice the work is done on heating the cars and bending them.
It is such a wonderful irony, that Rhett, JB's nemesis, has united with a presumed TAD ally, Mythbusters, so that both have a hand on the same knife.
In the case of the observer moving the same speed and direction as one of the case before the crash, there is remaining kinetic energy because, after the crash, the two vehicles are moving away from the observer.
Oh, but they were both stopped a minute ago. Now you want both cars to move at 60mph, so carrying the same KE as earlier.
The problem is that they were initially traveling in opposite directions, but magically, they are now moving in the same direction. There would be KE transfer as a result of the acceleration of change of velocity (direction), but you have no change in the KE. Voodoo.
KE is relative, but your mistake is to take the offered and naive view of the observer.
If the two cars have a mass of 10kg each and are moving towards each other at 10 meters/second, the kinetic energy of each car is 1/2 * mass * speed^2 or 1/2 * 10 * 10^2 or 500J. The total kinetic energy of the two cars is 1000J.
Now, change the reference point so that one car is moving 0 meters/second and the other is moving 20 meters/second. The kinetic energy of the second car is now 1/2 * 10 * 20^2 or 2000J - 2000J is twice 1000J.
How convenient. The other car has lost its KE. KE=m*a*d, but the mass has magically lost its KE, without acceleration. When you
do that so the KE is actually transferred, rather than simply saying you have done it, then you will find the energy has gone to whatever brought the car to 0m/s. That would be a problem for you, should that actually happen, or be imagined to happen.
And in the first case, your total mass was 20kg, and now its 10kg.
Any more Voodoo?
But, after the collision, the two cars will be moving, relative to the observer, at 10 meters/second. The kinetic energy of the two cars is 1/2 * 20 * 10^2 or 1000J.
And now the mass is back. It went away while you were churning the numbers to get back to the original value, but now one car is moving the other way, and not opposite to the other.
More Voodoo.
Subtracting 1000J from 2000J, you get 1000J. The change in kinetic energy is the same for both observers. The different observers see different things, but the physical reality of the situation doesn't change.
-- Roger
ETA/edit
V_car 1 = 10m/s KE = 1/2mV^2 = 1/2*10kg*(10)^2 = 500J
V_car 2 = -10m/s KE = 1/2mV^2 = 1/2*10kg*(-10)^2 = 500J
V_car 1 = 0m/s = 0J (playing with zero that way,. makes the former +/- signs,
indeterminate)
so
KE Car 2 = 1/2mV^2 = 1/2*10kg*(+ 10 -10)^2 = 0J
or
KE Car 2 = 1/2mV^2 = 1/2*10kg*(10 + 10 )^2 = 2000J