[AndyStevenson]

Ive heard it said that the combination of similar words & concepts is a sign of intelligence.

Good example is the word "misunderestimate."

Combines two similar words and produces a new word that expresses both concepts.

[aroostook war]

You have described a portmanteau word. Chortle comes from chuckle and snort. Slithy from lithe and slimy.

[doberville]

And, I've heard it said that combining of words or inventing new words is called a 'neologism' and is a sign of schizophrenia.

Oh well.