Thanks, That does make it a lot clearer..
Although to be honest reading the wording of it all I would (before this thread) believe that in that example, you could name the hound for military claim and choose to kill him. but because "instead of killing shuffle into your deck", I would contest that he was selected for military claim and was set to die so that would go off fine, but because "instead of killing" I would debate on whether someone would be able to use Harrenhal (for example) because no one actually died.
Similiar reasoning to the concept of saving. You can choose a character for military claim and then save him. So chosen for death but instead of being killed the character may remain on the table. That's kind've how I thought this mechanic on the hound would've worked.
I guess I'm still hung up on how they choose the wording, "instead of being killed" would imply that the the killing doesn't take place, similiar to if he was being saved, just instead of being kept in play put into the deck lol.