Matt Cutts revealed in a video when and why Google will write its own title for a web page rather than use the title tag on the page. I hope that means it will replace the long titles that go past 65 characters.
Google’s Matt Cutts: Why Google Will Ignore Your Page Title Tag & Write Its Own, by Barry Schwartz, Search Engine Land (April 28)
Criteria for good title include shortness, relates to the page (how does Google figure that out?) and relevant to the query. If Google decides to replace it, it will draw on content from the page – maybe the h1 heading, perhaps use anchor text pointing to the page, or the title used in the Open Directory. Really? Open Directory has only a small portion of the web and much of it is old and poorly maintained. Anchor text is usually very short – how will that help?
Also what does this do to search results for intitle: searches? Does Google still search in the title tag for the page? And then show a newly composed titled that doesn’t have the terms?
This answer by Matt Cutts raises more questions than it answers.