I love these title conversations, who the heck drives a title? or takes a title to the car show? or creates memories with their kids with a title? Can't remember the last time i looked at any of my titles.
On the other hand for the guy looking to resell the car that is a different story.
BTW "the car has already been paid for so now it's worth less" is total BS.
Compare the car to other cars and that is what it's worth. deduct $100.00 for title blemish.
I would agree with most of your points, a couple things to add though, a salvage title does affect the ability to finance the car if need be, it can also affect insurance coverage values. I only add these two things because I have checked into them for other cars in the past that I was looking to buy.