Is Bayonetta's outfit outrageous? Yes. It is high on the list? No. Here's why:
Many female video game characters have specific directives and motivations that don't require them to be so scantily clad, and yet they are designed that way merely as an afterthought to get gamers' attention. In other words, the way those characters dress is totally irrelevant to the rest of the game.
On the other hand, Bayonetta's sexuality is part of her essence, and the sort of gaudy bravado and confidence intrinsic to her personality is reflected as such in her appearance. It's as if both she and her creators are telling you, "yeah, I'm sexy. What the f**k are you gonna do about it?" The answer is nothing, because you'll have a bullet from an Umbran Sister lodged in your head before you could react.