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The main problem this discussion brings up is the level of detail that the players wish to go into, which I agree is probably why this was abstracted out in the first place. Whatever mechanism is used requires recording in some way and ultimately slows down the game.
True. So what can we do that doesn't require a lot of extra steps and still allows us to give armies some effect on titans throughout the game rather than just if they manage to kill it either through DC reduction or critical effect.
A quick change would be to add a line to the Reaver and Warlord critical effect that halves the firepower until the reactor is repaired. Following that, more in depth critical tables would be a good option but definitely a change to the game.
Another option is basing the effect on BM or remaining DC. I believe there was a version floating around a year or two back that toyed with the idea of DC reducing firepower. It never gained traction though.
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This would also I feel need applying to all war engines (maybe over a minimum DC level, say 3) and not just Imperial titans.
Sorry, but you have to assume that only the AMTL list will be affected. Think MC Hammer and "You can't touch this" when it comes to extending changes outside of a single list. It's partly what prevents more radical changes to the Titan list since such changes affect any imperial list with titan allies.
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If I was told my titan was now expected to have it's firepower significantly degrade from blastmarkers or damage inflicted (both of which are common occurances), I would certainly expect to see a reduction in points or an increase in base performance to compensate.
Well if we assume for a moment the concept I posted up top goes into effect, a standard pattern Reaver needs 4 points to fire all of the weapons. That lets it accumulate two BM before it starts degrading. Same for a standard Warlord. The fact remains, even if you can't shoot at all you still have an exceptionally difficult to kill Fearless objective claiming and contesting machine sitting there.