It is suitable as an alternative to titanium dioxide when higher acid resistance is required, such as in adhesive joints and sealants. 

if you compare the levels—which went as high as 50,000 milligrams/killigrams per day— to what humans are actually exposed to, we're talking orders of magnitude. It was a huge amount, Norbert Kaminski, PhD, a professor of pharmacology & toxicology and director of the Center for Research on Ingredient Safety at Michigan State University told Health.

The main concern with nanoparticles is that they are so tiny that they are absorbed into the skin more than we want them (ideally sunscreen should remain on the surface of the skin). Once absorbed they might form unwanted complexes with proteins and they might promote the formation of evil free radicals. But do not panic, these are concerns under investigation. A 2009 review article about the safety of nanoparticles summarizes this, to date, in-vivo and in-vitro studies have not demonstrated percutaneous penetration of nanosized particles in titanium dioxide and zinc oxide sunscreens. The English translation is, so far it looks like sunscreens with nanoparticles do stay on the surface of the skin where they should be.  

The California plaintiff is apparently not the only one concerned about titanium dioxide. The European Union recently banned its use citing concerns about serious health consequences.