I have been on five forums where they allow personalised custom titles as standard for all members. (in other words you can type in your own custom title, like Majic said)
But they have all had pretty serious trouble moderating it. With stuff like innapropriate or hateful titles, and even moderator impersonations!
So I say it would be a semi-good idea. It would be good if you make sure that there are all the proper restrictions with making custom titles. EG no swearing, hateful comments, racial slurs, or moderator impersonations.
But then again, having these personal custom titles would mean that people with custom titles who have been awarded them for their good work here, will suddenly have a totally useless award.
I like majics idea, where you have the title, but no stars. So that we can pick out the awarded titles from the personal ones...