What was the purpose of the WWF European championship?

Both your statements are correct. It was (along with the hardcore title) The first, easiest and lowest step as far as being a champion is concerned. I ranked it a little higher than the hardcore belt as literally anyone and everyone would and at the time did win it.

I wouldn't say the TV title had better feuds. It was around a lot longer and maybe had more prestige as it was what it said on the tin, The TV belt, it was defended on television and had a 15min tv time limit. Whereas the European belt was won in a tournament in Europe and thats where it's connection with Europe ends really,aside from the odd champion from there.

You kind of answered with the paragraph above it your own question. It was a belt for the rising stars and upper midcarders to lower mid carders. This brings me to what I think WWE should do now.

I think seeing as the same guys are on superstars every week, why don't they have a belt defended on superstars for guys given less chance to shine than those on raw or smackdown every week? TNA are doing a similar thing at the moment.

I miss 3rd tier titles, maybe a Superstars champion could at least give WWE what its lacking at the moment which is decent storylines and feuds for anyone outside the upper midcard. More could show what they can do and more people would watch superstars.