Like many others here on the WZ forums (and the IWC in general), I too enjoy watching Dolph Ziggler on WWE TV. I have to say that Nick Nemeth has drastically improved since he debuted as the Dolph character, and I've enjoyed seeing his confidence rise along with his improved in-ring skills. His mic work has gotten better as well, and Vickie Guerrero may or may not have attributed to that. His heel character has definitely benefited from Vickie's involvement, either way (she helped him get booed more, especially when they were first paired up).
To the OP: were you really always invested in Nemeth's matches? I'm not trying to be a troll, I'm just asking if you enjoyed his time on WWE TV before the Dolph character debuted. If I'm not mistaken, the first time we saw him on WWE television was when he was called "Nicky" and was aligned with the Spirit Squad back in 2006. The Spirit Squad seemed hated almost universally by the fans, probably more so for their gimmick than anything else. It seemed that the WWE was most invested in "Kenny" (later called Kenny Dykstra), and I think all the other Spirit Squad members went back to OVW. Of course, Dykstra was subsequently released from the company - and I haven't heard anything about the guy since.
According to wikipedia, the Dolph Ziggler character debuted on September 15, 2008 (that's four years ago, almost to the day!). I found the character to just be annoying at first, and that was the intention. A cocky heel, that went around just saying his name over and over. To be honest, I thought the guy wouldn't amount to anything back then. Dolph eventually changed my mind though, and maybe the minds of others as well. Ziggler proved himself as a competent professional wrestler over the last four years, and performs better almost every time I see him.
Ziggler almost seems like a different person (er, wrestling character) when you compare his current persona to that of the one that debuted in 2008. Although the basic element(s) of his character have stayed the same (a cocky heel), his confidence has drastically improved. Just like similar characters have in the past (Ric Flair is obviously the best example of a cocky heel wrestling persona), the only way to make that type of character work is to ooze confidence. A non-wrestling example of this personality trait is Frank Sinatra. The way Sinatra sings wouldn't work for someone who doesn't have confidence coming out of their freakin' wazoo! LOL!! Just picture someone like Ben Gibbard (the singer from "Death Cab for Cutie" and "The Postal Service") singing "Strangers in the Night" (the version that Sinatra made famous). Gibbard's shy demeanor would make it sound like a completely different song. Not worse, or better...just different. The difference in the two men's confidence makes a huge difference.
Since Zigger has became so much better over the past four years, it allows him to "drink his own kool-aid" so to speak. IMHO, Ziggler has that "it factor" because he's able to walk that narrow line of kayfabe. I don't claim to know the guy personally, or anything - but I believe that when he's performing in the wrestling ring he completely embodies the Ziggler character. He's able to believe that "it's not showing off if you can back it up" slogan, because he believes he's "that damn good" (to steal one from HHH). That only comes from working as long as he has, and having amazing matches. Not a lot of guys have "it", and Ziggler's one of the best right now. He's proved it time and again in the ring, and on the mic (whether that be in the ring, or on youtube). I believe we haven't even seen the best of Ziggler yet, and in time he'll prove himself to be even better than the Miz was when he was on top (and that's pretty damn good, IMHO).