Titles are useful, because they are essentially free to the company, and (some) employees value them. And valuing titles can be rational, even if worker herself doesn't care, because they can look good on the CV and to friends and families.

Some 'trinkets' are worth more to the employees than they cost the company to provide. So it's rational to provide them. Think of Wally's beloved coffee for an example. Or look at Googlers' lunch.