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I wondered how a pref named "toolbar_tips" can affect the content area, but apparently so did gerv. (I love his response: "Wow, that sucks.")
I agree. I do not believe the preference should control both types of text balloons.
However, I strongly believe that end-users should control their display and that K-M lacks global control of either toolbar tooltips or page content text balloons derived from the "title" element.
In K-M, controlling toolbar tooltips requires laborious manual editing of the toolbar.cfg file. Such an approach is not user-friendly, even to experienced computer users who don't mind tinkering.
In K-M I have yet to discover a way to control page content text balloons.
This is NOT a question of improperly using "alt" tags to display tooltips as IE incorrectly does, but disabling the display of the "title" element in any HTML tag.