While I understand Tito's emotional point on his myspace page, he misses the far bigger point. A signed contract is a done deal. You can not renegotiate a signed contract. Be careful what you sign!
Tito demanded the 3 round sparring match as a cathartic release of his anger towards Dana. Once he signed up, his obligation was set.
Just because Dana made some money on the deal, regardless of it being Tito's idea to film, Tito is BOUND by the terms of the contract.
Personally, I never do business with someone who breaks a contract. Tito better be careful or he will find himself down and out again.
Tito's sense of justice and equitable fairness could destroy his career as it once did. You can only negotiate future unsigned deals. Period.
Dana White is correct.