It would seem based on what I've read on this forum the only reason why anyone buys Latitude fares are:

1. So they can upgrade.
2. So they can reserve a seat, then cancel and rebook later and not pay a change fee (holds the seat).

The other stuff AC gives you is minimal:
1. 1 extra bag ($25 value)
2. 1 BOB snack ($6 value)
3. Extra AP miles if you book online (assuming they get credited)

Why not add some extra value to this fare and make it worth it? Some ideas:
1. 125% status miles
2. Free MLL access
3. Priority boarding on flights without executive class seating

I think the cost of these extras would be outweighed by the extra revenue of the fare options.