Dandy,
Are you looking for some automated tool which will identify the flatline sections and perform the cuts for you? I don’t know if such a tool exists. I use Danny’s technique myself, with the added handy device of turning auto-ripple on which connects the pieces automatically.
I’ve also had success digging up previous versions by rummaging through restored.veg files in the windows temp directory. It’s hit and miss, but sometimes you find old gold.