It works differently to that.
The outputs are enabled by the MMU - if any system address from $D000 - $D7FF is selected then the A8-A10 feed activate the relevant output.
D1 goes to PBI devices - on the XLs the devices actually have to decode and recognise that selection by the address bus, XE it's output goes to the ECI.
D4 is Antic - Antic has the full address bus and doesn't need a CS, so that output is generated but not used. But if you used it then any output you generated would need a read or write to Antic.
D6/D7 are kind of spare but used by some expansions like VBXE.
All that aside, it's a multiplexor not a latch. The outputs only become active on a cycle when the CPU or Antic is accessing an address on those ranges. So it's not going to be any good to drive an LED or anything.
Also, only one output can be active. The function of the multiplexor is to allow a small number of select lines to drive one of a larger number of outgoing lines.
An easier way would be to just use a joystick port for output functions but the current available isn't very much.
Or you could use a latch as part of a bigger circuit - you could e.g. use the D7 output to enable the latch which then captures whatever is on the Data bus at the time. Some cartridges use that sort of thing for bank selection.
Edited by Rybags, Sun Jan 22, 2012 9:00 AM.