I am by no means and expert in the subject and this is my own personal opinion:
If you have a flat organizational structure, it could be beneficial from certain perspectives among peers. Promotes equality, removes walls between people, makes senior co-workers more approachable.
However it does not resonate well with everyone. Some people need to have some kind of indication where they are within the organization - they think of it kind of like a "status symbol". Taking titles away from these people might feel like a demotion to them.
How the company I work at deals with it is this: there are no official titles for anyone and everyone can make up one for themselves, should they feel it to be important. And thus we have happiness engineers for support and professional services, lead pixel guru for front-end and many similar, often playful titles.
When talking to an outsiders or customers, we forego this and say a title that describes our position, experience and field more accurately so that the customer can have an idea who they are talking to.
I'd say, that the answer to this question should be examined within the constraints of the given organization and general principals be adopted to the needs of the organization and the people in it. I don't think it's a simple yes-no question and thus I did not vote either.