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I was wondering if there was a way to edit the names of stuff on the menu and make it so that you can equip titles like the "Tales of" series. Like, if an event gives you a title like "Droginator got the title "Sword of Swords". Is there a way to have a spot on the menu where you can equip and unequip titles?

Well, 2k3 is somewhat limited in the ways of custom menu systems. It is possible, but in order to include a titles option in to the menu, you would need to design the menu through events. This is entirely possible, but you need to have a good sense of events to do it, and even then I'd have reservations about making a system exactly the same with the exception of an extra option, given the time you would need to devote to it. That being said, if you are good at events, you can do it, but even then I'd suggest you redesign the menu for your own purposes.

Isn't that already there by default?

No.