Wireless dropouts due to wireless interference is a common global issue and it s not just confined to VM. Just Google "wireless dropping out" and peruse the 32 million hits.
First of all, the VM Hubs are basic entry level devices that serve most people well. but can struggle in wireless challenging environments not to mention the servery crippled firmware that hampers advanced users.
A decent third party router will give a better overall wireless coverage, but whether it will completely resolve your problems depends on many factors like your wireless environment. All routers are governed by legal transmission restrictions and still have to obey the same laws of physics as the Hub. Remember, the router is only half of the equation, the capabilities of your wireless also comes into play, as the Router still needs to hear the clients. Wireless is a two way street.
"Smart WiFi" and optimisation, are propriety implementations and are only as good as thier algorithm. There are scenarios where optimisation may not work properly (Hidden and Exposed nodes)
Router and client positioning also plays a major role with wireless reception.
First of all, I would ensure the Hub is placed in a central, open position, away from obstacles and electrical devices.
Rather than rely on "Smart WiFi", you could try changing the wireless channel manually. Downloading a wireless scanner like InSSIDer for Windows or WiFiAnalyser for Android would help by showing you the surrounding wireless networks, the channels they are broadcasting on, and their signal strengths, so you can select the best wireless channel.
Bear in mind that the wifi scanner will not show interference from other sources of wireless interference such as A\V streaming devices, Baby monitors, Chordless phones, Hearing aids, Microwave ovens, Plasma TVs, Security systems, etc.etc.
Setting the Hub's radio setting to 300Mbps (or 40Mhz channel) is not advised on the 2.4GHz band as it takes up over half of the available spectrum, making it prone to wireless interference..
Using the wider, usually less congested 5Ghz band could help, if your client devices support it.
I would check that all your wireless devices are up to date, client firmware can have corruptions causing wireless dropouts, a recent Apple iOS update springs to mind. (Which has now been rectified with a further update)
