[michaelt]

Matching salaries to titles means your best-performing developers can't get a raise without becoming managers, or getting a raise for everyone in their title (i.e. a raise that's much more expensive for the company), or leaving the company.

Seems like quite a pair of handcuffs to put on yourself.

[SatvikBeri]

Most places have more than one developer title. See e.g. the Fog Creek link.