In error message generation we were using the wrong
type constructor in inst_head.  Result: the type became
ill-kinded, and that sent the compiler into a loop.

A separate patch fixes the loop. This patch fixes the
actual bug -- Trac #15473.

I also improved the "occurs more often" error message
a bit.  But it's still pretty terrible:

    * Variable ‘a’ occurs more often
      in the type family application ‘Undefined’
      than in the instance head ‘LetInterleave xs t ts is y z’

It looks like nonsense, but all becomes clear if you use
-fprint-explicit-kinds.  Really we should fix this by spotting
when invisible arguments are involved and at least suggesting
-fprint-explicit-kinds.