Bug 101619

I think that's intentional.

It is intentional when creating new sessions to add the 'No #'.  However, if you are using --profile, I think Konsole should leave the titles as the user has them.

The comment #2 makes sense to me, and i really hopes that is the intention!
 When creating a new session, it is up to the application to generate an initial title for this session.
 When i as a user, configure my profile configuration file, then i want the application to use the Titles i have chosen. I don't think it is the intention that Konsole overrides my configuration on its own.
 When you are working with lot of sessions, then Konsole is a must. I have never seen any other smart terminal like that. When i start Konsole, it automaticly starts a lot of tabbed SSH-sessions to different servers, and i am ready to work.  If you are running 10-15 sessions, it become a real mess, when Konsole changes to numbered titles with too many letters. With version 1.8, i have to edit my titles every time after starting Konsole.
  On my wish list, there is an option for multiple lines of tabs, or other ways for organizing high number of sessions.

CVS commit by hindenburg: 

Don't alter session title when using --profile or session management.

BUGS: 101619


  M +8 -0      konsole.cpp   1.525
  M +1 -0      konsole.h   1.204
  M +1 -0      main.cpp   1.290


--- kdebase/konsole/konsole/konsole.h  #1.203:1.204
@@ -86,4 +86,5 @@ public:
   void setSchema(const QString & path);
   void setEncoding(int);
+  void setSessionTitle(QString&, TESession* = 0);
 
   void enableFullScripting(bool b);

--- kdebase/konsole/konsole/konsole.cpp  #1.524:1.525
@@ -3473,4 +3473,12 @@ void Konsole::attachSession(TESession* s
 }
 
+void Konsole::setSessionTitle( QString& title, TESession* ses )
+{
+   if ( !ses )
+      ses = se;
+   ses->setTitle( title );
+   slotRenameSession( ses, title );
+}
+
 void Konsole::renameSession(TESession* ses) {
   QString title = ses->Title();

--- kdebase/konsole/konsole/main.cpp  #1.289:1.290
@@ -531,4 +531,5 @@ extern "C" int KDE_EXPORT kdemain(int ar
           sCwd = sessionconfig->readPathEntry(key);
           m->newSession(sPgm, eargs, sTerm, sIcon, sTitle, sCwd);
+          m->setSessionTitle(sTitle);  // Use title as is
           key = QString("Schema%1").arg(counter);
           m->setSchema(sessionconfig->readEntry(key));

*** Bug 103542 has been marked as a duplicate of this bug. ***

Yes! 
 I just upgraded to KDE 3.5, and Konsole works fine!!