hmmmm. i kinda disagree. if its the way you say it is it would be:
"choose to make insane OR discard cards"
but no, it says:
"CHOOSE EITHER" - key words.
they're both choices thus it carries through to the discard option.
"choose to do this OR choose to do this"
if you choose either to discard the cards, its still a choose action, and illegal without sufficient cards. i have no problem ( much ) with the card but the wording needs to be changed as its contradicting the rules.
faq "In addition, a player cannot trigger a card effect that requires him to choose a certain number of targets if there are not enough valid targets available."
penfolds usually right about this stuff so i'll roll with it. haha.
Remember being able to poke a hole in something is not the same as being able to support your interpretation. In this case saying there is better wording that could have been used is still not going to change the fact that the word choose does not appear before the "discard X cards." Which means, at best, there is not completely solid proof of one way or another. That is not a valid argument for your interpretation as being the right one, as a matter of fact the very argument itself becomes circular because your argument against the ruling I'm defending also discounts your own (i.e. the wording is unclear and the card does not specifically direct you to choose X cards).
To the rule in the FAQ, again the card does not dictate that you choose X cards. It simply says discard X cards, and we already have a ruling that states you can be directed to discard a specific number of cards without having to first choose those cards. Your argument depends on the the placement of the word choose, and since having it say "Chooses to either A or B" does not inherently imply or direct you to make choices within the context of A or B unless directed, nor does it grammatically force you to read the sentence as "chooses to either have that character to go insane or chooses and discards X cards from his hand. X is the skill of the chosen character." You have no actual support for your interpretation.
Because the word choose is specific for targeting within this game as a defined term, you cannot automatically assume that it applies somewhere that does not have the actual word. I could otherwise argue that it belongs in any effect before an effect, and change the meaning of the card as a result, and the way the effect is resolved, and making something targeted that p-reviously was not. Catastrophic Explosion for example suddenly becomes a targeted effect if I just add the word choose to it.