Titles don't actually translate across companies well, that is more true across industries. Also grads will see their peers get a new title at some other company 2 years after college. A new title with a good raise at another company is definitely a reason enough to leave the current one. With avg. stay of 2-3 years at a company it makes sense for a company to try to retain sw talent with a title change whether or not it changes the meaning of work.