Asking people to remove quotes in their signatures is tyranny! If I can't say something just because someone's feelings are hurt then no one would ever be able to say anything! Political correctness is stupid.
You do have to discard a land card, or put the scuplting Steel in your graveyard. The replacement effect that modifies what happens as Mox Diamond enters the battlefield is copied by Scuplting Steel in the process of it entering the battlefield, as per the following rule :
706.5. An object that enters the battlefield “as a copy” or “that’s a copy” of another object becomes a copy as it enters the battlefield. It doesn’t enter the battlefield, and then become a copy of that permanent. If the text that’s being copied includes any abilities that replace the enters-the-battlefield event (such as “enters the battlefield with” or “as [this] enters the battlefield” abilities), those abilities will take effect. Also, any enters-the-battlefield triggered abilities of the copy will have a chance to trigger.
I'm a former judge (lapsed), who keeps up to date on rules and policy. Keep in mind that judges' answers aren't necessarily more valid than those of people who aren't judges; what matters is we can quote the rules to back up our answers. When in doubt, ask for such quotes.
The replacement effect created by Sculpting Steel's static ability applies before Sculpting Steel enters the battlefield, so it becomes a copy of Mox Diamond. As a result, the static ability would be copied from Mox Diamond and its replacement effect would apply. So, you would have to discard a land card to have the Sculpting Steel/Mox Diamond enter the battlefield, or you would put the Sculpting Steel/Mox Diamond into your graveyard.
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You do have to discard a land card, or put the scuplting Steel in your graveyard. The replacement effect that modifies what happens as Mox Diamond enters the battlefield is copied by Scuplting Steel in the process of it entering the battlefield, as per the following rule :
The replacement effect created by Sculpting Steel's static ability applies before Sculpting Steel enters the battlefield, so it becomes a copy of Mox Diamond. As a result, the static ability would be copied from Mox Diamond and its replacement effect would apply. So, you would have to discard a land card to have the Sculpting Steel/Mox Diamond enter the battlefield, or you would put the Sculpting Steel/Mox Diamond into your graveyard.