Ya, it seems like his spells cap out at 50ish damage (Aloth at level 9), but in AoE, so he's basically a AoE control, damage turret. A couple of his best spells require plenty of positioning though, and he doesn't get as many foe only spells as the priest or druid. Since the cipher is kind of bugged I haven't played with Mother very much (some item that keeps her from gaining focus in combat).
The higher level wizard spells are pretty good CC, like Stargazer said Call to Slumber is a battle ender, 14+ seconds prone? And that's on Aloth with his poor stats.
If you're not using Fan of Flames as a blaster wizard, you're doing it wrong. Fan of Flames, a level 1 spell, deals a massive amount of damage in a sizable aoe. The only weakness of it is it's finicky with positioning but otherwise it destroys. Fireball is solid damage with easy reqs, though not as strong as Fan. In fact I'd say Wizard (fan of flames) might even be a tad overpowered if used properly. My Wizard currently is my #1 damage dealt character, and second highest single target damage. This is in a party with dps Barb Rogue and Cipher on PotD with a full custom party.