" First problem is, the baby's head lines up with the freak's shin somewhere,"

Your thinking is much like having a background with Adobe Photoshop, but not Illustrator.  Photoshop is a Pixel based program, where the more you enlarge an image the more you lose the definition of that image.  Where as with a Vector based program like Illustrator you can take an image about the size of a any size and post it on a billboard, without any loss in the sharpness of the edges.

" We still have no idea how a chin morph gets transfered to the freak's chin,"

Well you've tried to go right to the edge of what the acceptable limits of Human form is.  I doubt the Freak is human, but and even if her were that's as far as you'd ever get...I did agree that groups might help us along a little, but do'nt forget your still talking "Chin," "Nose," and "Ear."  And that you always have, and always will be.  Nobody is going to change that, nor the defaults of the Mil' Baby or Freak.  Kinda like my primitive excersize*

"time will tell"

*Indeed.  I just ca'nt believe I'm here, before it has already.  My hypothesis is that this is inevitable. 

"I took the liberty of lining up thier eyes"

*Close, but no cigar.  You ca'nt line up any one part, especially where any others suffer, like where the outline of one wonders in and out of the other's.  This is kinda where Groups or Sundivision fail, excpet to break the math up into digestable chunks...Make V3(because she is the higher resolution) slightly bigger, all the way around, so their outlines do'nt touch at any point(but just barely) Now replace each out"line" with paths of dots(pixels).  And if they are the same number of pixels this could get easy fast..., but otherwise just make sure the outer has more.  Then take the top dot of the outer figure, and push it to the top of the other figure.  Repeat this process for the bottom, left, right, and all the in betweens dots,  and you've converted V3 t V4...at least from orthagonal... you would then need to repeat this process, from each degree of the Y axis, then Z, and then X....more if you can get more tan one ray trajectory per degree...but then when you're done you would render anything different!