Two ways to look at this:
Bad - The Wii U needs every game it can get, especially "major" third party releases. The more titles get canned, the weaker the overall library is, and the less confidence consumers and publishers will have in Wii U.
Meh - The game was one of the worst reviewed titles of 2013 so far, and almost universally panned by gamers and critics alike. Who was lining up to buy this junk?
Count me in for the second category. It's not good for Wii U to see any games get cancelled, but it's really hard to say that Wii U owners are worse off in this particular instance.