That is quite a weird issue ... however m2eclipse gave me my fair share of problems when I tried to create my projects. In fact, I ended up creating the archetypes myself!
Let me share my maven 3 POM file:
<project xmlns="http://maven.apache.org/POM/4.0.0" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
xsi:schemaLocation="http://maven.apache.org/POM/4.0.0 http://maven.apache.org/maven-v4_0_0.xsd">
<modelVersion>4.0.0</modelVersion>
<groupId>com.example</groupId>
<artifactId>example-project</artifactId>
<version>1.0-SNAPSHOT</version>
<packaging>war</packaging>
<dependencies>
<!-- add your dependencies here -->
</dependencies>
<build>
<finalName>example-project</finalName>
<pluginManagement>
<plugins>
<!-- v. useful! m2eclipse sometimes fails to see it as a
dynamic web app project in Eclipse. Declaring this plugin
would help eclipse recognize its nature (i.e. a Java
project requesting at least JDK1.7+ -->
<plugin>
<groupId>org.apache.maven.plugins</groupId>
<artifactId>maven-compiler-plugin</artifactId>
<configuration>
<source>1.7</source>
<target>1.7</target>
</configuration>
</plugin>
</plugins>
</pluginManagement>
</build>
</project>
Running mvn eclipse:eclipse
on this project should work. You can safely import to eclipse as a maven project as well (File > Import > Existing Maven Projects
) If it doesn't, then you should consider re-installing a fresh copy of maven.
Let me know if you manage to get it up and running. :)