Actually I like that they keep their level and XP. I think it balances out since titans are so expensive and are lost easily if not supported well enough. I think this feature should stay.
I don't know, I fighing this a.I hard level, I think a.i might had 6 to 8 planet, yet he spaw 5 time of titan to me in star every 1 to 3 min, I was "lock down" his system by building starbase in star in his system.
Personal, it's make me not want to build a "small ship sure as frigates and cruiser" but capitan and titan ship only to deny them having a exp to gave them level, I don't want turn off titan, I like titan ship, but I like opitan to turn titan's level and exp carry over after death off at least. if Ironclad done this. No fun if there nothing frigate and cruiser because it's only make enemies stronger if you keeping throw frigate and cruiser to them, it's like gave them a free cookies while you had to pay all thing to make a cookie, realy.