Don't think of the alt tag as an area to stuff keywords. That is not its purpose. It is there to describe the image. Short brief descriptions are suggested. For example, a picture of a platinum widget...
<a><img title="Platinum Widets Information" width="72" height="72" alt="Picture of Platinum Widget."></a>
It's worth mentioning that you should wrap your ALT text in square brackets to set it off from the rest of the body text in text-only browsers like Lynx (or even in Mozilla with the images off).
But yeah, there's definitely room for both ALT and TITLE since they serve fundamentally different purposes.