On the web: very rarely. I've actually never seen a self-closing <title /> tag, but I've seen other cases where docs that are actually XML are served with a text/html MIME type and this creates pathological DOM structures.
(I have a funny story from Gumbo's testing that illustrates this. I ran across a document that was actually some XML dialect with 45,000 self-closing elements in a row, but was served with a text/html MIME type. Since HTML5 doesn't recognize self-closing elements that aren't in the spec, this created a DOM tree with 45,000 levels of nesting. Gumbo could handle this because it uses an iterative state machine for parsing, but my testing code did recursive descent on this and choked. I posted it on MemeGen - Google's internal water-cooler website - with a link to the offending web page ... and then got a few emails from other Googlers about how it was kinda rude of me to crash their browsers. It turns out Chrome couldn't handle the page, and would die with a stack overflow when viewing it.)