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All APs on the same channel can cause CCI (co channel interference) and is not usually a recommended layout (unless you have a Meru system - they do something like this, or so I have heard).
The single biggest issue with wireless, in my opinion, is packet loss. Your results are consistent with this, and likely latency as well. However, latency often comes from packet loss; loss leads to retransmissions at 802.11 (retry) then further at transport layer (TCP retransmission). That looks like a wired trace of the problem and is informative (could be unencrypted or open wireless as well, but you did not show enough to decide). A wireless trace could show things like retry percentages, maybe channel utilization if available in the beacon, beacon loss rates, etc., all which can strengthen your argument.
