I myself don't use mysql that often but I might be able to give some insights into where the problem lies.
the latin1_swedish_ci character set is a single octet encoding system, meaning that every character encoded with this system takes up exactly one byte. Contrast this with the utf8_general_ci character set, where each character consists of from one to four octets per character, meaning one to four bytes are necessary to represent each character.
This has the obvious disadvantage that utf8 characters takes up more space, more memory, and most importantly, more cpu time to identify. And the most obvious advantage is that utf8 characters can encode for any unicode character.
Since this question is marked with 'query-optimization', you need to ask yourself if you really need to represent the more 'exotic' characters, or if the ones represented in single-octet systems (such as the plain ASCII-table) are enough for your needs. Since by its nature, utf8 will eat more cpu/memory.