Yep, staying onsite takes the Magic Morning entry entirely away from your admission type. It's the only way AP holders can get MM.
So I'm putting this out there since you're thinking of upgrading anyway, and if I'd done what I'm suggesting we would have saved a few hundred on our first big trip.
If you're thinking of getting APs, you might want to check the AP rate against what you're paying (I assume for a package). They *finally* released the GOOD AP rates. It seems you're going mid-November, if my day counting is right. I'm seeing rates of 149/night at PPH then.
Now you do have to include tax, resort fee per night and tax on the resort fee, so be SURE to add those in if you do the math for your trip. And you won't get the extras from a package.
What's funny is that for our first trip, I KNEW about the AP rate goodness while it was still possible to cancel our package, but I just didn't want to. I wanted the package for the first time, even though it cost a couple hundred more. But once we were there it felt so silly to not have booked at the AP rate, and it was too late by then!