Titles can be incredibly useful. If a title defines the way employees contribute (leadership, impact, independence, ability to own complex systems, etc) you now give the team an unambiguous set of expectations, a template to guide your team's professional development, and concrete metrics to assure a fair promotion process.
It also helps you compensate people fairly. Unconscious bias, differences in individual employees's abilities to negotiate, and other factors can often mean that equal contribution is not equally rewarded. Tying compensation to title, which is in turn tied to concrete and measurable expectations, reduces this inequality.
The devil's in the details, but well implemented, it can be hugely positive.