I'm with you. Giving someone a grand title is free; If a ridiculous title makes an employee even a little bit happier, who am I to deny him that small boon?
I've been the newest part of a four-man company for the past three years. I chose "computer programmer" for my job title. It seems that whatever your job title is in the tech industry, any appearance of actively working directly with the tech carries more prestige than sounding like you have some kind of managerial role.
C'mon. You're a programmer. You should be used to unambiguous use of language...
The thing is, some words and phrases have a very specific meaning. Say, xen-based virtual private server, and you have a pretty good idea what you are getting. Other words have a very nebulous meaning. say "cloud service" and you might as well say "solution" for all the information it conveys. It's folly to insist on a tight definition of a word once the rest of the industry has decided it's meaningless.