Titanium sure is used as a blade material, just not in the kind of quantity, and usually not for the same uses as standard steel blades. As the rotary cutter goes, i bet the blades are titanium nitride coated (for rust resistance) or something, and they just call them titanium blades. As for why you don't see Ti used as a blade material, it's mostly because of how soft it is. in the mid to high 40s on the rockwell scale i think. There are surface treatments that can raise the hardness of the titanium (carbidizing) but these add thickness, and don't produce a real razor edge. The real advantage to titanium is weight and corrosion resistance, which does make them a semi-popular option with scuba divers. I happen to have a pry-knife made of titanium. It's got a carbidized cutting edge, but it's not all that sharp.
There is one alloy of titanium that is used in blades, and it's called SM100, it's a proprietary blend of nickel titanium (not to be confused with beta-ti) that gives all the benefits of titanium (light weight, completely corrosion-proof) with a lot of the benefits of a traditional steel (ie: it can be hardened to regular blade hardnesses). The reason you don't see SM100 all over the place is really three reasons:
1.) it's fairly new as alloys go
2.) it is produced in small batches, it seems
3.) it is prohibitively expensive to use in a lot of applications. (probably because of #2)
Hope this answers a few of your questions.
Edit: a couple pictures of my pryknife. You can see on the leading edge of the front (ground) side of the blade and bot edges on the back side have carbidizing on them to increase the surface hardness.