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I do have some ideas to make titles potentially more meaningful. The idea is that certain titles would be reserved, such as titles that a faith or faction picks for its leader. I also had the idea that certain quests could have an associated title that you only gain access to on completion.
With this idea, you would still have the ability to type in custom titles, but if you tried to use a reserved title, it wouldn't be allowed. There would be an alternate title command syntax to view and set the reserved titles to which you have gained access. I think this gives more meaning to titles and also provides another type of reward for doing quests.
A great idea Dulrik. One of several changes that would be cool to see in game.