I'm all for a superweapon cap. It makes you strategize more with planetary shields. If I know my foe is just going to nail me with 20 novalith cannons I'm not going to bother building a planetary shield or even researching it. But now that I know my planet can survive, I"ll research it and build it.
GeneticBlueprint
I think a titan should lose three levels minimum after being destroyed. Maybe four. I went after my foe with my titan and all my capital ships maxed out. While I won the engagement, my fleet was decimated and my titan barely survived. After chasing off their remaining capital ships I retreated so that I could rebuild my fleet and let my titan heal. I go into the next gravity well on the way back to one of my planets and there's a level 7 titan waiting for me. Seriously? No penalty at all?