Google will INDEX perhaps 1000s of characters in a title… but I don’t think anyone knows exactly how many characters or words Google will count AS a TITLE TAG when determining RELEVANCE OF A DOCUMENT for ranking purposes. It is a very hard thing to try to isolate accurately with all the testing and obfuscation Google uses to hide it’s ‘secret sauce’. I have had ranking success with longer titles – much longer titles. Google certainly reads ALL the words in your page title (unless you are spamming it silly, of course).
QUOTE: “So it’s not something where we’d say, if your website was previously affected, then it will always be affected. Or if it wasn’t previously affected, it will never be affected.… sometimes we do change the criteria…. category pages…. (I) wouldn’t see that as something where Panda would say, this looks bad.… Ask them the questions from the Panda blog post….. usability, you need to work on.“ John Mueller, Google.
Think about how Google can algorithmically and manually determine the commercial intent of your website – think about the signals that differentiate a real small business website from a website created JUST to send visitors to another website with affiliate links, on every page, for instance; or adverts on your site, above the fold, etc, can be a clear indicator of a webmaster’s particular commercial intent – hence why Google has a Top Heavy Algorithm.
Early versions of search algorithms relied on webmaster-provided information such as the keyword meta tag or index files in engines like ALIWEB. Meta tags provide a guide to each page's content. Using metadata to index pages was found to be less than reliable, however, because the webmaster's choice of keywords in the meta tag could potentially be an inaccurate representation of the site's actual content. Inaccurate, incomplete, and inconsistent data in meta tags could and did cause pages to rank for irrelevant searches.[10][dubious – discuss] Web content providers also manipulated some attributes within the HTML source of a page in an attempt to rank well in search engines.[11] By 1997, search engine designers recognized that webmasters were making efforts to rank well in their search engine, and that some webmasters were even manipulating their rankings in search results by stuffing pages with excessive or irrelevant keywords. Early search engines, such as Altavista and Infoseek, adjusted their algorithms to prevent webmasters from manipulating rankings.[12]

So: how to proceed? On the one hand, SEO best practices recommend that you include relevant keywords in a number of high-attention areas on your site, everywhere from the titles and body text of your pages to your URLs to your meta tags to your image file names. On the other hand, successfully optimized websites tend to have thousands or even millions of keywords. You can't very well craft a single, unique page for every one of your keywords; at the same time, you can't try to cram everything onto a handful of pages with keyword stuffing and expect to rank for every individual keyword. It just doesn't work that way.

Keyword analysis. From nomination, further identify a targeted list of key­words and phrases. Review competitive lists and other pertinent industry sources. Use your preliminary list to determine an indicative number of recent search engine queries and how many websites are competing for each key­word. Prioritize keywords and phrases, plurals, singulars and misspellings. (If search users commonly misspell a keyword, you should identify and use it). Please note that Google will try to correct the term when searching, so use this with care.