It will still scratch and will more scratch easily then titanium, as its a naturally weaker element. It's mainly an aesthetic preference though as both are incredibly resistant to scratches regardless.
The experience from the Series 5 would say this is not true.

Apple Watch Titanium more resistant to scratches?
Ceramic is the most scratch resistant, SBSS comes in second and I’d guess SBTi third. As much as I love the look of the ceramic it’s hard to match with formal bands/attires and I can’t justify paying twice the price of SS.
Titanium is has a longer lifespan than stainless steel, but when new, the variant of stainless steel used by Apple is harder than Titanium.
Further in both cases it is the DLC coating which provides the real scratch resistance. Regular titanium Apple watches scratch very easily.
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