A friend (and reliable source) who worked at Blizzard and maintains some internal aquaintances claimed he was told Project Hydra was a red herring intended to discourage other developers, publishers and investors from producing future competition. The supposed purpose was to allow Blizzard a lengthier period to enjoy higher profits while maintaining a higher subscription base. According to him, "Project Hydra" was nothing more than WoW 2.0 revamped (Cataclysm).
Titan is claimed to be a new IP in the Blizzard franchise, while another leak has claimed that is not entirely true and that Titan is an FPSMMO with a new twist on an existing Blizzard IP. I am trying desperately to find the source link for this information, but my searches are now bogged down by all the gaming sites that are re-reporting the leaked project slate. A private blogger had posted this last bit of "info" and claimed his source was a roommate who is close friends to a codemonkey @ Blizzard. He claims this person comes over to his home frequently and has stated Titan (at this time) is nothing more than an engine....no art, sound, music, content, etc. The Titan team is allegedly in the Diablo wing of Blizzard headquarters and security has sealed off this wing except to those working in this section of the building. A private blogger? This must be BRAND NEW CONCRETE INFORMATION!!!! Hurnffff.
Blizzard's official job posting
My personal take on the rumors I have read:
It would seem likely that having a dev team working on the next gen MMO "Titan" in the Diablo wing could indicate a Diablo-themed FPSMMO. (Arf. I know....BRILLIANT! I should be, like, a detective or something)
"Titan" sounds more like a Starcraft name, and SC would seem the most likely of Blizzard's IP's to convert into an FPSMMO, and the least likely to pull existing subscribers away from their current games. An SC FPSMMO would have a completely different playstyle vs the strategy games and it would not be 'yet another fantasy MMO.'
It could be a completely new IP although this other rumor points to a twist. If Blizzard does indeed feed disinformation to the public (which is highly possible), it would make sense they would want to discourage more future competitors from even thinking of competing with their caliber of development/artistic integrity by saying they are developing an entirely new IP (which would crush the prospective hopes of MMO would-be's). Blizzard could reap the profits of that percentage of subscriber base who has fewer other quality options to turn to.