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I agree with the OP that str.title should be made smarter. As it
stands, it is a likely bug factory that would pass unittests, then
generate unpleasant results with real user inputs.
Extending on Thomas's comment, I think string.capwords() needs to be
deprecated and eliminated. It is an egregious hack that has unfortunate
effects such as dropping runs for repeated spaces and incorrectly
handling strings in quotes. 
As it stands, we have two methods that both don't quite do what we would
really want in a title casing method (correct handling of apostrophe's
and quotation marks, keeping the string length unchanged, and only
changing desired letters from lower to uppercase with no other
side-effects).