She definitely has it in her, but OB Lore states that Jyggalags downfall was on account of his power as a daedric prince, not so much the beauty of his realm. If Azura was in any way peeved about how beautiful his little land of order was, then it is likely that she would've been MORE angrier about his power.
If I was to guess, based on the personalities and traits of all the Daedric Princes, then yes, I would count her as one of ones more likely to be a major player in Jyggy's fall from grace.
There's a mighty few problems with that:
Sheogorath isn't a "mad Jyg" but a separate, yet related being.
We've seen Jyg's realm (at least part of it) its all gray and not very appeasing to the eyes.
Beauty is in the eyes of the beholder. I found the Shivering Isles to be quite beautiful.
Azura helped free Jyg from his curse...see Dawfang/Duskfang
Azura's sphere isn't beauty, beauty is just a side-effect.
The more likely reason they conspired against him was that Jyg "didn't belong". He's of Anu, and was for some reason in Oblivion. The other princes were being xenophobic, so supressed him and brought out his other. Or they did nothing and Shezarr and his half-assed world building did it for them.
The whole realm Beauty versus realm Beauty thing I'd imagine as more of a modifier myself. Sort of like how you can feel threatened by someone for one thing, and have another thing about them augment that feeling even more.
My thoughts were that Azura like the others didn't like Jyggalag because of how powerful he was getting, and that having a realm just as beautiful to compete with Moonshadow's beauty made her not like how powerful he was getting even more. So based on that initial dislike along with the jealous factor of having a realm just as beautiful, Azura could've had more potential involvement in knocking Jyggalag down from his powerful position. Course that's how I figure it hypothetically.
Realm beauty is definitely up to interpretation. Even though we've only seen glimpses of Jyggalags realm, there really isn't much to show how it really could've looked and acted. Unofficially I like to imagine that as the realm built up, that the prisms and such would start reverberating to each other more with greater result. And as the realm grew greater and greater, and that more Order spires and buildings were created, those things would start to glow or shine from that growth and power of reverberation. Then eventually instead of just Dull Grey prisms you'd end up with something much more vibrant. Although still grey, just more vibrant.
Sort of like how vibrant the http://daapspace4.daap.uc.edu/~blocksk/images/fortress.jpg looks, of all places. But just more Ordered.
Beautiful in that cold sense.
Where as Moonshadow is sort of Beautiful in a Warmer sense I'd imagine.
Disclaimer: Haven't played SI
So how does the Daedra's petty curse square with the explanation that the volatility of the Mundus destabilized Jyg?
Has anyone hypothesized that he is some sort of shattered, rejected gift-limb?
Daedric Prince's Dislike + petty feelings / Mortal Worship + Mortal plane stability = Getting Jyggy with it?
Not strong enough in lore to give an definite answer to that. Something to do with how actions of mortals on Mundus gave the princes the boost they needed to stop Jyggalag with just a curse instead of having to fight a war against him? I've got nothing. :shrug:
Shivering Isles doesn't give allot of information on Jyg's transformation and who where involved and the metaphyscial Lore is rather sketchy on that period as well but if Azura was involved, It would probebly be her motive, it sounds exactly like her.
Do you know her personally by any chance?
Probably not as much as other's might. It's all just from what I can gather from the existing threads and knowledge. A bit jealous of things, attention seeking, wanting praise, and can be temperamental especially about petty things?