Locals don't think seem to care about it but as a visitor I found it difficult to grapple with living in this constant threat of a volcanic eruption.
Latacunga has a small historic area, with a mandatory main plaza surrounded by a cathedral and some government buildings. The main market stretches around few blocks adjacent to downtown proper.
The main reason for tourists to be in Latacunga is to attend the city's signature Mama Negra festival (more about it later), held several times a year but the biggest celebrations occur which is when I visited this place. Mama Negra parades are legendary, with huge street parties and drunken madness. The parades end by sundown, people take a break and start celebrating again at night in concerts and parties that stretch well into the wee hours.
Latacunga is merely 25-ish km from the active Cotopaxi volcano which last erupted in 1877, effectively destroying the town. Yet, people continue to live here and are very relaxed about the whole affair. My couchsurfing host told me that the soil in this vicinity is extremely fertile and the air is perfect for agriculture and horticulture.
Besides being a volcano town known for wild parties, Latacunga is a great base for trips to Cotopaxi and for travelling on the famous Quilotoa loop. Several adventure outfitters cater to the tourist crowds, arranging trips and adventurous activities such as mountain biking, hiking and climbing to the summit of Cotopaxi. I slept here for three nights and was in-and-out for another five days.