Esmi:
I did as you asked. I used Twenty Twelve and deactivated all plugins.
Directly after the image upload was complete, I typed a name into “Title” and “Alt text.” After that, I clicked “Insert into Post.”
When I did so and hovered over the image, the name I typed in did not appear in a yellow square over the image. I clicked “Edit Image” and when the new screen appeared, the name I had typed into “Title” had disappeared.
Try it yourself and you will see.
Try this as well: upload an image into a post, publish it, start a new post and insert that same image. Click “edit image.” The information you previously typed into “Title” will have disappeared.
This never happened with the previous image upload system.