If your losing your titan you either didn't pay enough attention to the battle or you are about to lose anyway. Why compensate poor gameplay with a get out of jail free card?
I dont see how titans losing their xp on death is any different to what it has been like for capital ships all this time. Sure Titans are a lot more powerful but frankly if your opponent is stronger than you then they should have every opportunity of taking you out rather than constantly having to worry about the free high level titan that will keep coming out.
What you will end up getting is a titan sluggfest where titan A kills titan B and titan B comes back and beats titan A because it has half health from the last conflict and it will rinse and repeat. That to me doesn't sound fun and it just makes the whole experience dull, mundane and outright ludicrous.