I think it's more like how Rodin said it:
Rodin: It's getting harder and harder to tell the worlds apart. Human world. Inferno. Paradiso. Who can tell the difference?
Bayonetta: Even harder with Purgatorio in the middle. Fight long enough in there and you'll really lose sight. Why the sudden interest in metaphysics?
Rodin: It's a balance, right? Even if some of them like messin' around with the humans, we've all got a stake in the status quo. But people keep ****in' around like this, the Book of Revelations is gonna look like mother goose. Heaven and Hell are gonna go straight for each other's throats.
I liked that. As dumb and ridiculous as Bayonetta is, that little exchange explained everything in a simple way without dragging things down with exposition, and made the world seem like a powder keg on the brink of detonation. It made reference to the Bible, so we had some context to what this universe was like. It also helped that we barely knew who Rodin was at that point, so there was a compelling air of mystery around him.
On the other hand, DmC is very heavy on exposition yet never defines the exact nature of what happens to people's souls. I suppose we can conjecture that due to how Mundas apparently created Limbo by splitting Reality with the Hell Gate (or something) that Limbo acts as a kind of net, ensnaring human souls that perish in reality so that demons can...do something to them.
This game really needed scenes that implicitly demonstrated demons tormenting humans, not parts where Dante walks through rooms where shadows of people bounce around the place as if Mundus is running Garry's Mod. It might have made Mundus less sympathetic.