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John Talbot dying of grief was a stupid way to write out the character. Honestly though, I think the biggest problem was that Larry Talbot never inquired about what happened to his father. It isn't brought to his attention and he never asks about his father. That I don't believe.

If the script said he died of grief, then I guess he died of grief.

Claude Rains was approached about reprising his role from "The Wolf Man"
for this film, but he declined.
Right. So the character died.
Can't stop the signal.

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Sir John Talbot had just bashed his beloved son's head in with a silver cane.
And remember, he'd also just lost his other son, John, Jr., in a tragic accident before the previous film's events. So both his children are dead (as far as he knows). That seems enough to drive a parent to grief.
I mean, really, how many times will you look under Jabba's manboobs?

I wouldn't want to see that happen since he's the bad guy in the remake. I actually hated that and they only did it because they thought having 2 werewolves in it would sell the movie better.
"Time to die! Like a man!" Venom Spider-Man Web of Shadows

They could use that plot line for a sequel to the Wolfman 2008 with Del Toro.I think it would be better if they bring him back to life the exact same way they did in Frankenstien meets Wolfman,only after the cemetary scene(5 years after Talbot's death),pickup the story about 40 years latter on the eve of WW II.This time period has alot to offer:Nazi on the prowl in Europe and plot could deal with their efforts to use the supernatural to advance their cause(not trying to steal from Raiders of the Lost Ark.Another thing is it's not that modern and the werewolf fits in better.You can also have him return to his home and have only a very old Gwen Conliff still alive.This might provide an interesting side story.. I can see a very old Gwenn living in a nursing home,being told she has "a visitor,a very handsome young man,says his father was a friend of yours".

I would love to see that plotline in a remake or some other adaptation in the future. It would have made sense for Larry to return to his home and find everyone around him shocked that he is still alive.

Sir John was not needed for the sequel. If he was in it, the plot would have been completely different. The cop and doctor who were dealing with Larry Talbot would never have had to stand around scratching their heads in the first act of the film wondering if the Larry Talbot in the hospital bed was the same one who was supposed to be dead. Sir John would have been able to clear up that mess immediately by telling them right off this was his son and yes he has apparently come back from the dead.

It would have truncated it, as scenes would have to be cut to accomodate Claude Rains' salary !

But it would have been an more interesting movie with Sir John still alive.How do you think it would have changed the plot?

Yeah but dude, if we're talking about plotline here, and not actor's careers, it makes perfect sense that he dies of grief soon after. Sir John Talbot had just bashed his beloved son's head in with a silver cane.
Just look at Rains', sorry, SIR JOHN's, face in his last shot of THE WOLF MAN