How does the latent heat created due to precipitation formation aid in storm formation?
By warming the air, making it unstable.
Latent heat released from water vapor as it condenses goes into the air, making it warmer. Warm air rises. As it rises it cools. Cooler air is not able to hold as much water vapor, this results in condensation, which releases more latent heat. This cycle continues until the rising air reaches a level in the atmosphere that is warmer (although at this point it doesn't stop rising as it has inertia built up, but it does stop rising once it uses up that inertia).
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