Error message for invalid string literal type could be improved

TypeScript Version: 2.0 Beta

Code

// A *self-contained* demonstration of the problem follows...
interface Foo {

    method(value: 'aa'): void;
    method(value: 'bb'): void;
    method(value: 'zz'): void;
    method(value: 'last'): void;
}

const x: Foo = {} as any;

x.method('bar'); // Error line

Expected behavior:

A more meaningful error message, e.g.

Argument of type "'bar'" is not assignable to parameter of type "'aa' | 'bb'|...|'last'"

Actual behavior:

Argument of type "'bar'" is not assignable to parameter of type "'last'"

I am finding this error message confusing, because the compiler picks the value of the last overload in order to report the error, and there is nothing special about the last value.

Start by compiling the self-contained TypeScript snippet and reproducing the overload error. Trace how the compiler selects the reported parameter type, then make the diagnostic include the relevant literal alternatives and verify that the message matches the expected behavior shown in the issue.