I humbly suggest we go easy on the hyperbole. Yes, titanium has extremely poor thermal conductivity compared to aluminum or copper. No, it doesn't mysteriously "hold heat in" through some unique mechanism; it merely conducts it away less effectively than aluminum or copper. But many very successful flashlights have used titanium, and also stainless steel, which has even worse thermal conductivity but is fairly common.
Silver, 248 BTU/hr/ft/F (higher is better)
Copper, 231
Aluminum, 136
Brass, "yellow", 69
Titanium 99% pure, 13
304 stainless steel, 8
For a light like the "500", plain titanium or stainless would seriously impact performance and life, but your suggestion of working in a copper heat sink is an excellent one. It would probably have to be full-flashlight-length on the inside to do much good.