1.

Why is the wave function complex? I've collected some layman explanations but they are incomplete and unsatisfactory. However in the book by Merzbacher in the initial few pages he provides an explanation that I need some help with: that the de Broglie wavelength and the wavelength of an elastic wave do not show similar properties under a Galilean transformation. He basically says that both are equivalent under a gauge transform and also, separately by Lorentz transforms. This, accompanied with the observation that $\psi$ is not observable, so there is no "reason for it being real". Can someone give me an intuitive prelude by what is a gauge transform and why does it give the same result as a Lorentz tranformation in a non-relativistic setting? And eventually how in this "grand scheme" the complex nature of the wave function becomes evident.. in a way that a dummy like me can understand.

2. 

A wavefunction can be thought of as a scalar field (has a scalar value in every point ($r,t$) given by $\psi:\mathbb{R^3}\times \mathbb{R}\rightarrow \mathbb{C}$ and also as a ray in Hilbert space (a vector). How are these two perspectives the same (this is possibly something elementary that I am missing out, or getting confused by definitions and terminology, if that is the case I am desperate for help ;) 

3. 

One way I have thought about the above question is that the wave function can be equivalently written in $\psi:\mathbb{R^3}\times \mathbb{R}\rightarrow \mathbb{R}^2 $ i.e, Since a wave function is complex, the Schroedinger equation could in principle be written equivalently as coupled differential equations in two real functions which staisfy the Cauchy-Riemann conditions. ie, if $$\psi(x,t) = u(x,t) + i v(x,t)$$ and $u_x=v_t$ ; $u_t = -v_x$ and we get $$\hbar \partial_t u  = -\frac{\hbar^2}{2m} \partial_x^2v + V v$$ $$\hbar \partial_t v  = \frac{\hbar^2}{2m} \partial_x^2u - V u$$
(..in 1-D) If this is correct what are the interpretations of the $u,v$.. and why isn't it useful. (I am assuming that physical problems always have an analytic $\psi(r,t)$).

More physically than a lot of the other answers here (a lot of which amount to "the formalism of quantum mechanics has complex numbers, so quantum mechanics should have complex numbers), you can account for the complex nature of the wave function by writing it as $\Psi (x) = |\Psi (x)|e^{i \phi (x)}$, where $i\phi$ is a complex phase factor.  It turns out that this phase factor is not directly measurable, but has many measurable consequences, such as the double slit experiment and the Aharonov-Bohm effect.  

Why are complex numbers essential for explaining these things?  Because you need a representation that both doesn't induce nonphysical time and space dependencies in the magnitude of $|\Psi (x)|^{2}$ (like multiplying by real phases would), AND that DOES allow for interference effects like those cited above.  The most natural way of doing this is to multiply the wave amplitude by a complex phase.  
