Like you, I deplore the reduction in utility of Draft view in Word 2007 and above compared to Normal view in Word 2003 and earlier. One of my earliest unpleasant surprises was to find that Draft view doesn't reflect the application of character spacing (Condensed)
to text. It just isn't as WYSIWYG as Normal view.
That said, you can get a lot of the advantages of Draft/Normal view by using Print Layout view with white space hidden. This gives you the same continuous text stream (without interruption by headers, footers, and page breaks) that you get in Draft view,
but you retain the WYSIWYGness of Print Layout view. Since, even in earlier versions, you can't actually place wrapped graphics accurately in Normal view, using Print Layout is ultimately more efficient, anyway.
OK, I'll give it a try. And I still have my little trick of pasting images from Visio. Although, now that I've brought it to their attention, they'll probably plug that hole.
When you say "white space hidden", do you mean something more than just double-clicking in the page gap to hide the headers & footers?
There used to be a "mode" in page view that would suppress the left and right margins, too. They seem to have taken that away as well.
Clearly we aren't going to change Microsoft. It took IBM 40-50 years to become fully ossified. Microsoft has done it in less than half that time. So I guess it is still good at something. ;-) We may be saved by pressure from OpenOffice.