Methane is made of carbon... life on titan would be carbon-based, but
it wouldn't use water as a solvent... it would have to use some kind of
hydrocarbon, probably ethane, as a solvent. I think you meant
methanogenic-based live, where it takes acetylene and reduces it to
methane with hydrogen and uses the free energy (-deltaG) for other
metabolic processes. The atmospheric concentrations of methane on Titan
suggest that something is putting all this methane in the atmosphere
while taking away acetylene and hydrogen, and nobody knows what it is.
There's either some kind of catalyst on the surface that's really good
at reducing acetylene to methane, someone did the measurements wrong, or
there's life. It would be pretty coincidental that someone measured
methane levels, acetylene levels and hydrogen levels wrong, so that
leaves choices 1 and 3. Of course, the null hypothesis is that it's some
kind of unknown chemical process and not life, but discovering either
would be a boon to science.
Europa gets all the attention from nascent biologists and layspeople
because it (MAYBE) has water. Titan gets more attention from chemists
and biochemists because there's definitely something going on down
there, and we're not blinded by water-chauvinism :P.