You should be happy your 737s/A320s in J don't have a blocked middle seat like they do in Europe:
That being said, I suspect the amount of space a proper lie flat J cabin would make it quite difficult for AC to justify. Consider
AA's A321T, a modified version of the A321 designed to handle it's 4 cabin layout (10F, 20J, 35 PY and 31 Y). Their J and F cabins are all lie flats. Contrast that with
AC's A321 which features 16 J seats and 169 Y seats. You've got nearly half as many passengers on the AA flight as you do the AC. Keep in mind AC is often the sole domestic airline for many routes in Canada (i.e. YYZ > HNL, YUL > YWG to name but a few) and it's no wonder that they need to have seating capacity to ensure they can transport the people who will take that route. It's also difficult to make that argument for domestic service where you're looking at flights that are a couple of hours in length. How could you possibly get sleep on such a flight. By the time your meal is doled out you're already half way through the flight!
Simply put, if AC thought there was a market to introduce Executive Domestic service they would've done it already:
Safe Travels,
James