Blanc’s side crashed out of the tournament in the quarter-finals on Saturday, losing 2-0 to world champions Spain following a ponderous performance.
Domenech lost his job as Les Bleus boss after a disasterous 2010 World Cup campaign in which the national team failed to get beyond the group stages and several players revolted.
However, Nicollin still feels the team would have had a bolder approach under the former Lyon boss.
He told RMC: "I regret the departure of Domenech, because he, at least, had the b****."
Nicollin is renowned for his outrageous comments in France, once claiming that if his team won Ligue 1 it would be such an humiliation for the likes of Marseille and Paris Saint-Germain that they should stab themselves with a sausage.
The 68-year-old also once expressed disappointment at the possibility of entering the Europa League, saying: "All I’m worried about is that we might qualify for the Europa League. That’d p*** me off. What a rubbish competition!"