I'm willing to bet the igValidator has has a hard time attaching to the form submit event because you create the editors in the document fragments (via jQuery) that are not yet inside the DOM, let alone inside a form to bind to. Simple solution though - if you insist on creating the inputs via JS, attach them before intializing the igEditors:
Fiddle: http://jsfiddle.net/damyanpetev/U9SJP/
$("#label1").append(label1);
$("#label2").append(label2);
$(input1).igEditor({
width: 140,
required: true,
validatorOptions: {
onchange: true,
formSubmit: true
}
});
Remember there's yet another submit option (using input tag of type submit) that is handled separately - there's a very elaborate sample on what Editor options do.