Monolith Soft was an entire developer, not just a one game deal. Last Story was ambitious, but not exactly "AAA" in terms of budget or marketing (see Nintendo barely caring to release it outside Japan).Well the issue there is they've been throwing money at Japanese studios. They bought Monolith Soft, moneyhatted Monster Hunter, had Sakaguchi make them a new JRPG, funded two games from P* (both of which have more budget than Bayonetta 1), etc.
At least some of that money going to stuff like Pandora's Tower, etc that will never sell should go into making a new Western AAA core IP for the Wii U.
To be honest I don't know all that much about their Platinum deal, but creating a AAA western game would likely cost more than Bayonetta 2 and W101 combined. A couple times over. If it doesn't sell Nintendo is out a ton of money with nothing to show for it, and they seem to go out of their way to avoid those situations. I'm sure they still feel burned by Geist, but part of it could also be a total lack of understanding the western market.
I think Nintendo would be good to get out of their comfort zone and get some western folks on their board of directors and push for some changes. That topic on the board definitely made it seem like Iwata has a very safe, conservative board full of effective yes men that aren't going to push issues, and Nintendo really needs the opposite of that right now.
Edit: Oh darn it, first post on the page.