I've managed to fix this with the following:
cd .local/share/applications/
mv compiz.desktop{,.old}
After logging out and back in again, window titles are still not there
but compiz *is* shown as running.
Switching Visual Effects in System -> Preferences -> Appearance to
"None" and back to "Extra" fixed it.
** Changed in: metacity (Ubuntu)
Status: New => Invalid
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Metacity/Compiz fails to start at login
https://bugs.launchpad.net/bugs/565046
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