I think banks are the canonical example of title inflation, where VP doesn't mean anything anymore.
VP in banks is one title that means something. A VP is able to sign off on your getting a loan from the bank. This is a legal thing, someone who isn't a VP cannot give you a loan. (the rules are a bit more complex, but close enough). Thus banks of lots of VPs with very little power: they need people all over who can give loans out.
The heart of the problem is that most companies have no real path that isn't into management.