What is the purpose of this module?

While the core profile module iis useful it has a limited set of field types and is hard to extend.

The Content Profile module by allowing the use of content types for profile opens up a whole world of possibilities including more field types by using the Content Construct Kit (CCK) and any of its add on modules.

but with the default profile.module you cannot use CCK to add specific fields beyond what core provides. using CCK.module opens up a world of possibilities with it's field addon modules.

Having profiles also be nodes opens up even more possibilities with the views.module and panels.module as well.

I think the default profile.module will eventually be replaced with more flexible and powerful features as the fieldsapi gets into core.

It is useless to add the status of an issue directly in the title. First, it's a duplication as the status of the issue is already shown; second, it constrains to change the issue title when the issue status is changed.

Actually it has been requested that people mark issues as solved in the title to make it easy to differentiate them (the status flag does not guarantee something is actually solved). See point 12 at http://drupal.org/forum-posting.

That is for forum topics; an issue report is not a forum topic.
That is because forum topics don't have anything to show its status; issues do have the status field, as you can see.