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Quick clarification. The effect on the Daemon-Titan reads "reduce initiative to -1"

Does that mean you strike at initiative step -1, which should be impossible due to the rules in the core book about stats being unable to go below 1, or is it actually just that it lowers the enemies initiative BY 1(So I:4 becomes I:3). And if that's the case...what a waste of 100 pts?

Looks like a typo

That's what we came to figuring out, eventually, yeah. Is there any use to that Daemon-titan of slaanesh then?

Which book and which unit are you looking at? The most recent rules for Chaos Warhounds and Reavers that I can find are in IA13, which has different wording. They also give the model the Daemon and Hatred (Daemons of Khorne) rules.