I was not commenting on goodness or badness, just simulacraness.
Are you saying that assigning titles according to a system that you think is how titles should work makes the title a more accurate truthful signal about actual social reality than assigning titles according to the way titles are generally assigned industry wide?
It seems to me that this is not the case, because assigning titles that are inaccurate (according to industry standards) in either direction causes confusion. In the case of title deflation, the excerpt above suggests that it makes it harder for people with lower titles than their actual responsibility to interface with those outside the company, get meetings, etc. The inaccurate signal imposes a cost.
If I understand the sort of thing you’re talking about correctly, I like Miles Vorkosigan’s solution (from Memory, by Lois McMaster Bujold):
“The one thing you can’t trade for your heart’s desire is your heart.”