If I create a title for a blog or webpage, do I want to find keyword phrases that are generally searched for and related to my niche but aren't very competitive compared to big competitors that I will never be able to beat because of the niche of the web I'm in or do I just want to go for gold every time and use really competitive key words that might not land me in the first few pages till my site gets bigger? If it helps make more sense of the question part of my niche is related to retailing so I obviously won't beat the actual manufacturer's.
The title is very beneficial when we create the title including the keywords. You can use the competitors keyword but need some work to reach in rank.
Initially try to get ranked for long tail keywords, once you get ranked for them and you build some credibility in the eyes of google, then add competitive short tail keywords.
Including your target keyword/s in the page's title tag helps increase your on-page SEO so try do it whenever possible.