@akfalcon - I use a similar strategy, but without the helper.. I just set the default @title in the application controller and then use, <%=@title%> in my layout. If I want to override the title, I set it again in the controller action as you do. No magic involved, but it works just fine. I do the same for the meta description & keywords.
I am actually thinking about moving it to the database so an admin could change the titles,etc without having to update the Rails code. You could create a PageTitle model with content, action, and controller. Then create a helper that finds the PageTitle for the controller/action that you are currently rendering (using controller_name and action_name variables). If no match is found, then return the default.
@apeacox - is there a benefit of setting the title in the template? I would think it would be better to place it in the controller as the title relates directly to the action being called.