The other time “Head of” titles make sense is when you’re just getting started.
Other than CEO and in some cases CTO, other C-level titles don’t make a lot of sense. And VP titles definitely don’t make sense on an 8 person team.
As you say, the “Head of” leaves room for the team to grow and shakeout, either graduating into a C-level or VP title, or hiring someone into that role that that person can learn from.