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What does this mean about the future of Bayonetta?

There is no future unless Nintendo funds another sequel

Does this title prove the age old assumption of many people that Nintendo consoles will only sell old school Nintendo games such as Mario and Zelda?

Assumption? It's more or less a fact for the most part. Sadly that is.

Can we still blame 3rd parties for not bringing mature games to Wii U when Nintendo themselves couldn't sell Bayo 2, a very mature title to their audience?

No, "if it's not making dollars it's not making sense" quote from my idol nxtgen720.

Should Nintendo just focus on making more old school games and give up on a new mature venture?

Well Nintendo didn't make Bayo2. I know what you mean though, I don't think they should give up on making mature games. If they have a solid idea for one they should make it!