Should article submissions be formatted in draft format, or in the format of a particular journal?
Depends from journal to journal.
There are journals like Decision Support System that require from author to use specific format for initial submission, which btw differs a lot from format of their online publications. It seems to me that format specified in their Guides for Author is designed to ease review process i.e. making side notes and underlining by hand on printed copy.

There are ones like Information Processing and Management, that clearly state they are following "Your Paper Your Way" policy, which in essence: allows you to use any citation style and format for initial submission.

And there are journals, like International Journal of Cooperative Information Systems, that make no such statement, but if you read carefully instructions for authors - they say: that you'll have to apply their template / style / format after being informed on acceptance of your manuscript. 

So, unfortunately, there is no easy answer. It would make a lot of sense if all journals follow "Your Paper Your Way" policy, but it is not the case. Many times, you are left in uncertainty due lack of explicit instruction on this.