The closer the light source is to the optical axis, the less shadow detail there is (giving "flat" lighting), and the higher chance of specular reflections (giving glare). Not to mention creating "red-eye" in people, and "gold-eye" in pets. As well, the smaller the light source, the harder the shadows, and the stronger the specular reflections. Thirdly, since light follows the inverse-square law, the light fall-off with distance is very strong when the subject is close (which is usually what camera flashes have enough power to light), leading to a rather narrow zone of "good" light, and over-exposed closer to the camera, and too dark further from the camera.
To combat these issues, there are a number of techniques that can be used. First, to create shadows that give volume, the flash source is moved off-camera, or at least away from the optical axis. Bouncing the flash off a wall or ceiling or other reflective surface usually moves the "light source" away from the optical axis. This bounce technique also serves to make the light-source (the wall or ceiling) much larger, giving a more rounded look to the shadows created. Thirdly, with a longer distance to the subject, the light fall-off is much less. However, bouncing the light means that you're now spreading your photons around and you need a lot more of them to give a decent exposure. So bouncing can work IF your flash unit has enough power.
Another technique is to put a modifier on the flash unit which makes the light source appear larger. Portable soft-box attachments, and bounce card attachments all try to broaden the apparent area of light. Again, since you're spreading out the light, you generally need a separate flash unit (often on a flash bracket) with enough power, to make this work.
All this assumes that the flash is the main source of light. If you are trying to mix ambient with flash, then you have in fact TWO exposures occurring at the same time. There is a setting for the ambient, and another for the flash. What they will share is the aperture. The ambient exposure is then controlled by the shutter speed (up to the sync limit), and the flash exposure is controlled by the flash power setting. Once you get a feeling for how to control either exposure, it's not too difficult, but doing this well is a higher-skill exercise.