Actually it can, but before I post my workaround let me explain:
Modules used: latest versions of Filefield, Imagefield, Imagecache and Views 2
Today I noticed that all of my thumbnails (Imagecache generated) inside Views aren't showing any titles while hovering over them. I tried to include the title through the views option "Output this field as a link" by adding the tokens [path] for link path and [title] for alt text.
By testing these settings I stumbled over a strange behavior. Some images showed the node title on hovering, some images the image title itself which the user can enter on the node form (filefields custom title text setting).
My first though was: Thats a bug, because I expected that views should be able to overwrite the field link title.
Then I discovered that the link title attribute was overwritten by views as expected but images including a title attribute inside the img tag weren't. The img title tag seems to have a higher priority as the title of the anchor tag.
E.g. a teaser with an article about the critical view of tourism showing an image of a monkey with the title "Who doesn't love monkeys" :-(
Workaround:
I enabled "Rewrite the output of this field" in views for the image, changed the imagecache preset to URL and added the following code:
<a href="[path]" title="[title_1]"><img height="80" width="150" title="[title_1]" src="[field_images_fid]"></a>
Does someone has another solution?
Edit: Moving post to development forum.