If she could think of her father as unworthy, I expect a bending fight between them would be terribly one-sided at this point. Not that I expect that winning such a fight would solve her problems.
I think this is true, but also kind of missing the point. If Azula could think of her father as unworthy, beating him would be a pretty short, sharp victory, but the crux of Azula's issues is that 'coming to think of her father as unworthy' is like... Realising that is probably where this quest, and the loops, come to a close? That psychological journey is the substance of Azula's arc, it can't be dismissed as a small thing.
Because like, Azula does not have a weak foundation. Avatar was a story that understood the importance of a strong foundation as early as having Zuko beat Zhao by stressing the importance of his basics, and it still posited Azula as the greatest firebender of the age. Iroh describes lightningbending as "a pure expression of firebending, without aggression" (in pointed contrast to every other firebender in the show who hasn't learned from the dragons) that "requires peace of mind" and
even in the middle of a psychotic break, still Azula could throw lightning. It would have been entirely congruent for Zuko to win that duel in canon because Azula was so off-kilter from the comet and her deteriorating mental state that she lacked the focus to wield lightning anymore, but no, she is Azula, the prodigy, and even at her nadir still her fire burns blue and lightning bends to her will.
All the uncertainty of a fight between Azula and Ozai is in the mental layer, in whether Azula could actually bring herself to
fight her father in earnest, without being undone by internal turmoil. Why do you think we never, either in canon or in this quest, saw Ozai personally tutoring Azula or sparring with her? If she knew she could beat him, even in practice, that would be a crack in the illusion of her father as the all-powerful Fire Lord.
Like,
Personal Truths
(3/5) Fire Enfleshed
At fourteen, you were one of the greatest firebenders in the world—you commanded the cold fire earlier than any other in history, and you were the first since Sozin ordered the dragon hunt to call flame of another colour.
That was before you started looping through time.
You are greater than great, now. You are incandescent.
This is the only Impact 5 Truth that Azula has, and the only Personal Truth which has never been altered through all 90k words of this journey. You do not get that good without having a strong foundation and a steelclad understanding of the fundamentals, not in this setting, and not in the real world either. She may be ignorant or dismissive of the spiritual side of firebending but that, fundamentally,
doesn't bloody matter for Azula.
It matters for someone like Aang, who is the Bridge Between Worlds and so needs to understand spirits as well as mortals. It matters for someone like Iroh, who has had a long, hard journey to be at peace with himself and acquire wisdom as well as power. It matters a lot to Zuko, who has had to fundamentally reshape how he looks at the world and what firebending means to him when he lost the anger that drove him, who needed to find some other emotional fuel to burn in the furnace of his soul. But Azula? Azula is fire enfleshed, and though everything else in her life might fall apart, that will remain simply, obviously true.
Hell, just this update we had Ty Lee poking at this with the idea of running away from it all to be a fire-dancer, and Azula flounders at the thought because with so much else in her life falling apart, with all the questions she's uneasily considering about her status, her father, her brother, the empire she's a part of, who she is, she can't deny that the idea has its appeal. Ty Lee isn't wrong when she says Azula is a firebender the same way she's an acrobat. Azula
would be happy as a fire-dancer, the world's greatest firebender up on a stage, pushing herself to her limits and beyond to the applause of a crowd she can't even hear, too enraptured by the joy of her art.
Unfortunately, her life is more complicated than that.