Waters is retarded. Why would you put a card in your deck that is probably only useful by turn three and even then could and most likely will be used against you just as often as you get to use it. It's just a horrible idea. Most melee games are all but decided by plot three anyways. If they wanted a new title then add one. This is just garbage.
I generally have to agree with this. I think he should be a 2 gold cost because of the lack of opportunity and the chance it will be used against you at some point. It might even still be the title that other players don't take because they want the benefits of the other titles(being Supported for example). So maybe it won't work that well against you? Even if he is chosen as someone elses title, that will free up another title that you might find more useful.
Consider his use in a 3 player melee game. He gives(if he is a title at this point) the Round 2 3rd player a choice between 2 titles. That COULD be interesting as it doesn't force the 3rd player to take a title they do not have a choice over.
The whole "character turns into something else if they die/discarded" condition is just too slow to feel like you are maximizing their use. I wish there were other ways to make it happen sooner without compromising a lot of your deck or game flow.