>>77043061Nazz's purpose is to be the sporty, fun, cute love interest. That more or less confines her to a specific set of traits and characterizations. Which unfortunately makes her flat as you say.
If she acts too much like a bitch, she basically becomes a redundant Sarah. If she becomes overly antagonistic towards the Eds, then she becomes a redundant Kanker/Kevin.
The show wouldn't have honestly lost much of Nazz was edited out, but at the same time she's there to add that "crush" element to the show. Most everyone's had a crush growing up on that hot, fun person, and it's Nazz's purpose to be that person. She's basically in the show to add a certain kind of humanity to it.
Otherwise she's not much use in gags aside from making us cringe when the Eds fuck up around/with her. She has some minor use as a sporty character for sports episodes, but that's also a role shared with Kevin (who would be more pertinent in those situations anyway).