Very good point, Nightingale. I feel the same way, but realize that is not universal.
Just to play devil's advocate, think about this - if someone were a Shihan or even a Soke, you would rightly refer to them as such in correspondence with them, or when describing them to someone else. In traditional Karate circles, at least, if they refer to
themselves as such, or demand the title be used, that is looked down upon. As an example, I know an individual who, to my knowledge, is the highest ranking living practitioner in his style (7th dan). When being referred to, he is often called "Shihan" - a title he absolutely deserves. However, he never refers to himself as anything other than "Sensei", which seems to be the way it is done in Japan as well (this is a Japanese style I am referring to).
Usually, the honorific title is also only used within the style itself, as well. A kung fu or Muay Thai stylist would most likely refer to this individual as "Bill", as opposed to Shihan, or even "Sensei." Occasionally, if a person is knowledgable about the honorifics used in the style, they use it even if they don't train with the individual. For example, while I don't study Kung Fu, I would have no problem calling a high ranking individual "Sifu." Not all people feel that way, however. I have called Japanese instructors "Sensei" before, and they have corrected me, saying that while they are a teacher, they are not
my teacher, and I should only call my own teacher Sensei. Sometimes they do let you get away with it, such as if you can't pronounce their name correctly.
Note: I'm not saying anyone here is doing any of this, nor using the analogy to refer to a specific person; I'm just making a point.