Ozai would probably be indifferent. The play serves well as propaganda, but that alone is not a reason to be particularly interested in it. As I recall, the play makes Azula more prissy & downplays her power, which she would likely not be happy with, but I think it does have her destroying her brother in combat, which might placate her.
The play simply exaggerates every quality already existing in each character. For example, Katara can get emotional, which is tied to waterbending, so of course she is weeping all the time in the play. Toph is a tomboy to the max, so she is played by a big, buff dude. Like Neo said, I don't think that unless they played Ozai in a negative light, he would not have really cared how he was portrayed, as long as it got the point of the propaganda across.
I think that Sokka and Toph were the only ones who didn't mind how they were portrayed.