The American Heritage Dictionary actually defines epilepsy as: Any of various neurological disorders characterized by sudden recurring attacks of motor, sensory, or psychic malfunction with or without loss of consciousness or convulsive seizures. At one time, people who were instituationalized were labeled "epileptics." So really according to that definition, epilepsy can include psychic disorders and may or may not have seizures as a a part of the diagnosis.

We actually put together a presentation which included this a couple of years ago.

However, the most common understanding of epilepsy is as a seizure disorder, not a mental disorder. So while he was insensitive, techincally he wasn't totally wrong, just dated.