Patch: Selectable Script

In other words, am I correct in saying if using this, and monsters did have scripts, they would actually abandon the pseudo "intelligence" of a script for a random choice from a limited menu while confused? 

Yes, the muddle status actually forces the monster to ignore its script. While confused, it will do a random action based on its control list. It is the default behavior in the vanilla game. In the original game, I was always surprised that a confused monster mysteriously acquired news actions. It is because its actions between the control list and its script are different.

The berserk status also will force the monster to ignore its script. It will always do a fight command.

Only the turn script will be ignored when muddle/berserk. The counter script, however, will always be executed.