As mentioned in my previous post I purchased a modem specific UPS to mitigate this issue. The instructions told me to charge it for 24 hours before first use so I used the Pace power brick to charge it before plugging the ATT Arris into it. This mean that I had to unplug the Arris which also powered off the ATA (I think I mentioned that I have a USB A -> USB micro cable that powers the HT801 and it's plugged into a USB port on the back of the modem). When I plugged it back in, the modem came back and this time the HT801 connected w/o me needing to power cycle it after the modem established internet connectivity.
Watching the lights on the ATA, I noticed that unlike when it was connected thru the Pace, the internet light didn't light up at all before the modem was up and online which leads me to believe that this Arris BGW210-700 might not bring up the LAN before the WAN which might help mitigate this issue. I do recall when the Pace was in place, the ATA would light up the internet light before the Pace was up and talking to DSL and then it would never reconnect until I power cycled it.
So for all of you who have this issue, what modem do you have? For others who have FTTN, would you mind power cycling both and reporting your results including which modem you have? If the Arris actually mitigates this issue, this might be a good solution for folks who see this regulary.