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It appears that there are several issues concerning the pane title when one opts to use panelizer to control the display of a fieldable panel pane bundle.
To start, setting the title setting to 'no title' is not respected (still outputs the pane title with standard formatting).
Secondly, using the 'title' field content type does not work either.
Thus, what I'm getting with these settings:
I hope that makes sense? It's very different from the behavior that I'm getting using panelizer with other entity types. I'm using semantic panels, but I cannot define a default semantic panel style for a specific FPP bundle (wouldn't that be nice?) thus I'm looking to panelize the default display to achieve this effect, so one does not have to style each individual fpp pane as its created.