Essentially you were correct. The correct way is ChangePe +ChangeKe. Ke is positive but PEchange is negative. So you're actually doing Ke + -Pe= Ke-Pe.
Yeah, that's what I just realized. How silly!
I just got some time to sit down and think about this and remained convinced the way I was thinking about it was right. It's just a trivial formality of adding and subtracting.
To the OP, here's what I was just thinking about which made me realize I wasn't crazy:
Let's pretend we have a normal slide, at we're taking into account friction (air resistance, surface to surface friction, whatever, all lumped into one term: Wf)
At the top, let's say some object has 100 Joules of PE and nothing else. Then, let's pick some arbitrary point (point 1) that's a bit down the slide.
Let's pretend that at point 1, the PE is 60 Joules and the KE is 35 joules. What does this tell us? Well, if there were no friction, the change in PE would all go to increasing the KE from zero. So, if there were no friction, KE should be equal to 40 joules. However, we see that we've lost 5 joules somewhere, as in the real scenario the object only has 35 joules of KE (60+35 only equals 95; energy was not conserved). Where did it go? Friction of course. Looking at it this way, it seems the answer should be just change in KE minus change in PE, but the distinction comes from remembering that PE was a negative change, and KE was a positive change.
So at point 1 on the slide,
100 = mgh + 1/2mv^2 + Wf
0 = (60-100) + (35-0) + Wf or
-Wf = delta PE + delta KE
-Wf = -40 +35
Wf = 5 joules
Note: i'm calling Wf positive and just remembering that it is doing negative work. You could easily just change the sign.
hope that's useful.