I posted this a few minutes ago on the Debian forum: As noted above I did post a bug report on the failure of update-grub to configure the grub menu properly.
I recently tried removing and reinstalling grub2 once again. (I had done this several times earlier with no success.) As I watched the version numbers were the same, 1.98 in both cases, but the number following the "+" sign was different. So the new grub2 is 1.98+20100b04-10 Frankly I have no idea what that means. What I do know is that I once again let grub2 produce yet another grub,cfg and voila! Suddenly I have a properly listed Grub2 menu! The titles are correct and everything works. There have been no other changes on my system other than to remove and reinstall grub2 one more time. I can only conjecture because I do not know enough to be insightful. I suspect the dev team working on grub2 has made some subtle changes and those may have resolved the situation?