Short answer, yes true. Pig in a poke - stay away from it unless you simply wish to part it out.
A way to "go around it"? Yes, I suppose. It is called "title laundering" and of course, not ethical and bordering on/is criminal.
Most states provide for a de-titling mechanism by which a severely distressed vehicle is never to be returned to roadworthy status. Think clear title>salvage title>certificate of destruction title. Most states call it a "scrap title" or "junking certificate".
You did not state whether this was a CA certificate or some other state.
California issues a non-repairable title certificate. "A non-repairable vehicle is a vehicle, which has no resale value except as a source of parts or scrap metal. The vehicle cannot be titled or subsequently registered. Once a vehicle has been declared non-repairable, ownership of the vehicle may be transferred only twice on a non-repairable vehicle certificate." (Source: NADA National Edition Title and Registration Textbook, 2005 edition)
Hope this helps!