I have to agree. Although I like Lwaxana, and in particular the way Odo reacted to her, I always felt her introduction to DS9 felt a little forced.
The first one wasn't that off - a handful of ambassadors are on the station, even if there's no particular reason for there to be a Betazoid ambassador. It's her next two appearances that seem odd - 'Fascination' and 'Muse' are real stretches, Muse especially - wouldn't Picard have made a better choice? I mean he's done the whole 'save Lwaxana from a suitor' before, he has experience.