Both, really. I mean that speculation that consciousness collapses the quantum wave function is obviously unsatisfactory. Human consciousness is a very high-level phenomenon, relying on immensely-complex chemical and biological machinery, which are made up of atoms and molecules that operate by the rules of quantum physics. This violates basic reductionistic assumptions that are normally taken for granted in physical science. If true, it would seem to make any complete understanding of consciousness or of quantum physics impossible. The only reason such an unconventional idea would be seriously considered by physical scientists is that they didn’t have any clearly better alternative.
Beginning in the early 1980’s some physicists began to formally consider models of measurement using quantum mechanics. The result of this has been the theory of decoherence. The general idea of decoherence is that when a quantum system interacts with another system with a large number of internal degrees of freedom, satisfying certain thermodynamic conditions, components of the system’s state that correspond to macroscopically distinct states “decohere” from one-another and cease to interact. This means that quantum behavior disappears.
Decoherence does not rely on any single interpretation of quantum mechanics, such as the mainstream Copenhagen interpretation or the many-worlds interpretation, because it is a mathematical consequence of the physical theory. You do still need a few basically ad hoc assumptions, but they are similar to a subset of the assumptions required anyway in most interpretations of quantum mechanics.
There is no need to give the observer any special role (except perhaps in the computation of probabilities, which are philosophically problematic in general).
