It's been 4 or 5 months since I switched from Titanium to writing native Objective C myself, so things may have changed since then (but I don't think they have). It's a misnomer to say that Titanium "compiles" Javascript to Objective C.
Titanium lets you write Javascript that executes using JavascriptCore (a Javascript processor that is part of iOS) on iOS, and I believe V8 on Android, but I could be wrong on that. Then, they have bindings in Objective C (and Java). So when you call in Javascript Titanium.window.create();, the relevant Objective C is executed by the bridge.
This is all fine and dandy until you start doing something more complicated than displaying a few windows. For example, our app needed to have some complicated TableViews with highly customized rows that needed to be re-generated on each draw. Executing the logic for that in Javascript has a huge penalty hit.
So while I would recommend Titanium over PhoneGap any day, it is not true that it is a "compiled to Objective C" sort of thing (again, at least it wasn't 4 months ago, and I was using at that time 1.80 which was the super-bleeding-edge-dev build, because I had a ton of issues with random crashes in the 1.7x series due to the Titanium Database module not being completely thread-safe at the time).
Sorry to hijack.
EDIT: Just to confirm, 1.81 is the current "stable" release, so what I was using 4 or 5 months ago is what is the standard now. So it does not compile Javascript to Obj. C.
Also, for an example of the random crashes we were seeing, see: http://www.juliusbuss.de/web/youatnotes/blog-jb.nsf/dx/quick...
A lot has been fixed in the 1.8x series, but at the end of the day you're still depending on someone else's middleware to behave and not crash your app for no reason.
In case anyone decides to go down the learning Objective C route, learning with the excellent "Programming iOS 4" book took me about 1 month from the first page I read to having the whole app re-written, so it's really not too terrible. You don't have to do any of the memory management stuff anymore with iOS 5 and ARC, either.