AMAZINGLY, I think I found the root cause to my Magic TrackPad's (MTB) erratic behavior (see my prior post for my Apple hardware details).
It seems, in retrospect, that my AT&T 3G Microcell (HW V2.0 from 2011) has failed a of weeks ago. After reading many forums, there might be a need to replace the power plug on the ATT 3G Microcell. Either way, for a long time I had not realized that it was stuck on just the Power On per the LED indicators with a yellow/green mixed light... Today, after probably a couple months of not realizing that the thing was not working correctly, I decided to keep it unplugged in order to test the power cord with a multimeter.
To reiterate, I had done all the things to get the MTP to work and the only workaround was keeping my pinky on the right edge of the MTP as I used it. Today, I did not use my pinky on the edge of the MTP. It took a couple minutes to hit me that the MTP was acting normal. I was shocked. I thought about it and sure enough, the ATT 3G Microcell was unplugged.
It seems to me that the issue all along had to do with interference as using my pinky on the right edge "grounded" me? Perhaps, you might not have an ATT 3G Microcell but your upstairs/downstairs/left/right neighbor might and it aint working correctly. Or there might be something that is not working correctly near by. I've had this AT&T 3G Microcell since about 2011 and its been solid and I've been using it while I had the previous MTP (which I though had died) and this new MTP.
I hope this helps others.