She was named after her grandfather. In Zuko Alone, when Azula was showing off, her grandfather (or father) said 'A true prodigy..just like her grandfather for whom she's named'
If they make another Avatar series Azula needs to have a main part with Aang. Also change the way she looks. I saw a picture with her carrying two whips that had her bend lighting and fire. Also she had her hair down and wore a completely black outfit with a skirt that had a slit on both sides. She looked like a Dominatrix but she looked hot as hell. (Yes the pun is intended)