OK - here's what I do. I'd be interested in views on whether people think it's cheating or not. Say I've got some obvious word endings in my rack - ing, ier, iest I will play about with the other letters and come up with things that seem like they might be words, but aren't ones I've heard off. If I type them into the dictionary and it comes up green, I play it. Good example of this just now in a game against Adam M - I had ISTGORS, with a free E on the board. Once I'd taken away and IST to make a word ending with the E, I looked at what I had left and wondered if 'gorsiest' was a valid word. Bingo. So I played it. It's not a word I know or would use.
Cheating or not?
I wouldn't use the word cheating, but I would think that method was a bit pointless. An anagram generator does exactly what you described above, but quicker, so there isn't much difference really. I will confess to checking up three or four letter words that I hope are real and checking ones that I think are words, but when it comes to a seven letter word that will basically crush the game, I'm not overly keen on placing something that is obviously attained via total trial and error.
A no 7-letter word rule might be worthwhile as they are awarded so many points.