I think the text for the Bladed Terror is just a little confusing and doesn't seem to account for all circumstances. It says that the Bladed Terror may not use, destroy or carry cards. Should we read it that the Bladed Terror never draws cards (for example, when it passes a Stealth or Melee challenge) and that it can never be the target of a card distributing effect (like the Tower of Havoc)?
The answer to both of your questions is "yes". Bladed Terror cannot, under any circumstances, use, destroy, or carry cards. That rule covers every situation. Bladed Terror is an awesome target for an AMAZE in the Tower of Havoc because it allows you to destroy an enemy character's entire cadre of cards! I'm the FAQ guy at www.duelofages.com, so please stop by and visit.
Tim aka Red River Roy, The Man in the Bright White Suit