Yeah, low doses of atypical antipsychotics can be prescribed for insomnia, because their side effects include pretty pronounced sedation. There are so many other alternatives and, given the side effects, I think they should be prescribed as an absolute last resort. In a lot of cases, that may be what occurs; I just know that I wouldn't want to be on an antipsychotic unless absolutely necessary (though atypical antipsychotics have less severe side effects).
I think if one is afraid that others could read his thoughts but somehow knows they can't then it's "just" anxiety. If the person is absolutely sure they can read his thoughts no matter what then that does sound paranoid to me.
Exactly, it is paranoid, not really psychotic. Trust me, if all you have is thought broadcasting, there's no way you're schizophrenic. And thought broadcasting isn't even a hallmark of the disorder; it occurs in many other common syndromes. For schizophrenia, you have to have at least 2 of the following: delusions, hallucinations, disorganized speech, grossly disorganized/catatonic behavior, and negative symptoms (alogia, avolition, affective flattening).
I had thought broadcasting beliefs several years ago; it was because of my depression and anxiety. I genuinely believed people could hear my thoughts; it was so bad that I would actually change what I was thinking about so that they wouldn't know my true thoughts. I look back now and think I must've been *****ing insane, but it seemed logical at that point. I don't have a psychotic disorder in remission; my anxiety and depression were so severe that they brought on psychotic features. For instance, severe major depressive disorder with psychotic features includes, most typically, delusions and/or hallucinations or, less typically, thought insertion, persecutory delusions, or delusions of thought broadcasting.