Dana was never a boxer, he was a boxercise instructor. There's a huge difference between hitting pads and a live opponent, and even more so with an opponent that's trying to hit you back. His footwork is mediocre, and beyond all that... he's never even fought professionally and who knows how he'd react to getting punched in the face repeatedly because we don't even have any metrics to support otherwise.
Tito's fought, and taken shots from pro fighters in 4 oz gloves. So I stand by my comment, I don't think Dana has the power to even faze Tito, and Tito would have mollywhopped Dana easily. Dana would not have heard the final bell.
Tito did back down, but it wasn't out of fear, or fear of losing. He wanted more fights and more paydays from the UFC, which is exactly what happened afterwards. Had he knocked Dana out, there's a good chance it wouldn't have. Not sure why you find this unbelievable.