The dropouts at the times you mention are more probably due to the fact that noise and interference at ADSL frequencies usually starts increasing from when the sun goes down and decreasing again at the end of the night and your telephone line can act like a AM/MW aerial This is because the frequencies that affect ADSL (same as AM/MW radio frequencies) propagate (travel) much better when the sun is below the horizon. To this you must also add the fact that there is also likely to be more noise coming from other ADSL users at these busy use times. The longer your line the more these various noise sources are likely to affect you.
The exchange kit itself, apart from when you yourself manually disconnect, usually only disconnects if the noise is high enough to swamp the ADSL signal, i.e. Loss Of Signal. It will then reconnect at the best possible speed it can at that particular time. Switching your router on or off normally shouldn't make any difference, unless you do it by pulling the plug on it a lot in a short period of time, when the exchange kit could see this as an excessively noisy line and lower your BRAS profile to cope. If this happens, it can take three days for your BRAS profile to recover.
If you haven't done so already, have a look here for information on optimising your own internal wiring for ADSL;
http://yarwell.blogspot.com/2005/08/adsl-tweaking.html
You will see Yarwell's name appear often on this site as he is a font of useful information and is always helping people on here.
If you need help on getting the stats from your particular modem/router, have a look here to see if yours is covered;
http://www.kitz.co.uk/adsl/frogstats.htm
EDIT: Typo
Edited by deleted (Mon 23-Apr-07 02:24:54)