After using the "Generate SQL Statement" tool on a table and when it's copied to clipboard, pasting the statement puts 3 columns per line:
FROM MyTable;
However, when generating another Select statement using the Generate Select Statement tool, it's again copied to clipboard and when pasted it's not formatted per the formatter options.
If planning on saving the generated SQL to a file, go to View | Toad Options | Editor - Open/Save. Then locate the check box "Format files when opened" and check it. Click Apply and OK. The next time the file is opened, it will be formated automatically for all subsequet uses of the generate statement tool.
STATUS:
An Enhancement Request has been created to include a feature to auto format when generating the statement.