Is it possible to have a dynamic title on the menu item based on the argument that Views is receiving? I'm using the title on the menu item on the breadcrumb and my breadcrumb changes based on the argument.
I never used breadcrumbs and i am quite new to Drupal but i think breadcrumbs get their copy from the URL arguments ( which is also where view is getting its arguments, well in most cases). Though the menu items get their copy from the taxo (if you use a taxonomy menu block) or whatever name you gave them in the menu section of the site admin.
Therefor the only solution i would see, is to create you owns menu template in which you can use function such as drupal_get_path_alias() to populate your menu.
Create the view as normal, install Menu Token and tokens will be available to use in the path or title of the menu. You can then select a token based on the contextual filter. Alternatively, you could add a hidden Custom Text field populated with the required value based on the contextual filter and use the token which represents the Custom Text field in the menu title.