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Good title of a free site can have two benefits:
1. Higher click through to your free site
2. High PR pages linking to your free site with high traffic keywords in anchor text
I believe that first point is more significant, because of immediate impact - higher traffic to FS from link lists.
Second point is significant in the long run, if you manage to optimize your FS for keywords in site title. Not that traffic will pour in from search engines, though. BUT, if you have hundreds of sites optimized like this - it could become significant.
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