Title systems are a good way to "grow" your character. Once you have obtained a title, you could have a permanent stat increase.. and that form of growth could take the place of the Physical Level system which currently seems pointless.

That's just one idea. FFXI's title system was very basic, and that sort of thing would work too.

On the other hand, FFXIV doesn't have nearly enough content to bother with Titles right now..