ADSL2 would improve things. But what you describe really sounds like a line fault, or possibly external interference. Unfortunately you're up against a mass market ISP who's likely to either slow your line to try and ride out the issues, or claim it's external interference and wash their hands of it.Any increase would help, but I'm mainly hoping there will be better stability. It's the dropping out (or choking down <0.1 Mb) that's the problem.
Did the Openreach guy say anything like doing a "lift and shift" or "tie pair modification"? Both are effectively swapping you onto different equipment at the exchange, although I'm not clear on the difference.