I\'ve seen at least two recommendations on StackOverflow to insert newlines between sentences when editing LaTeX documents. The reason being that the practice facilitates so
If you put a comment marker at the end of each sentence, Emacs knows not to move the next line inside the comment:
chat chat chat.%
A new sentence
with goofed up wrapping that needs to be fixed.%
Mumble mumble%
Then M-q fills each sentence separately, at least in AUCTeX 11.85. (If you test this in Emacs, there seems to be a bug where if this is the first paragraph in the buffer and you type M-q, you get an error message. Just put a newline before the text to work around it.)
If you don't want to type the comment characters, you could take LaTeX-fill-paragraph and modify it so that sentence-ending punctuation at end of line works similarly to comments.