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Yes, it can be used as an anti-psychotic. However, in most of the cases I've heard, it's used as a sleep aid.
This was the case for me, too. I was on it for 10 years and ultimately went off because I grew out of my chronic insomnia. Aside from a muted personality and nightmares (the latter controlled by another medication), it was pretty fool proof and had very little consequence in my particular case.
As always, it depends on the person, but the blanket statement you quoted doesn't seem fair.
