Phil
Is there something better than un grouping, taking out the video 1 & 2 sections and re grouping?
Not really.
Except, I would probably use Opacity (Opacity keyframes at the clip's rubberband level) rather than cutting of the ungrouped in sync videos. But, cutting of the selected ungrouped clip should work fine.
If all you have is video 1 and 2, would you not be taking out just 2 to let 1 show? With 2 on top, 1 will
not be seen.
That is my first impression of the situation that you have described for your multi camera editing with Premiere Elements.
ATR