Don't you think the 780 is going to hurt Titan sales? It's definitely priced to protect the cards below it, but I don't see it being priced close enough to Titan to get many people to choose the Titan over it.
Yes I still think it will hurt Titan sales. But I don't think Nvidia could have priced the 780 any higher. I think they priced it as high as they possibly could. Since I am not privy to the details of how many titan cards are in stock, I can't say what the extent of the effect is. I ASSUME though, Nvidia talked with its vendors, knows the stock of titan, and priced/released the GTX 780 accordingly so that vendors could clear remaining Titan stock and still sell the lower end cards.
What I mean by this is, if vendors are already running low on Titan cards, then even with hurt sales, they could still sell the rest.
However, I think you're right, it's more about the cards under it than above it (ie Titan). I think that's because the volume of the cards below it more than makes up for their price, so if you're going to protect something protect your big money makers, rather than your niche 1,000 graphics card market.
Speculation on all of this, but I can't see it any other way.