rc doesnt start

I launched an instance of ami-9d2089f4 (,ebs/ubuntu-precise-daily-amd64-server-20120725) with the following user-data.

#cloud-config
packages: [ pastebinit, runit ]
runcmd:
   - [sh, -c, 'echo "$(date): runcmd" | tee /root/runcmd.txt']
output: {all: '| tee -a /var/log/cloud-init-output.log'}

The runcmd never happens. This is very reproducible. I'll attach a console log and dmesg (2nd boot) where I did:
 * launched the instance, saw the problem
 * sudo dpkg --purge remove runit
 * sudo rm -Rf /var/lib/cloud
 * edit /etc/grub/menu.list to add '--verbose' to the command line.
 * sudo reboot

Runcmd is run from the 'cloud-final' upstart job that has:
# cloud-final.conf - run "final" jobs
# this runs around traditional "rc.local" time.
# and after all cloud-config jobs are run
description "execute cloud user/final scripts"
start on (stopped rc RUNLEVEL=[2345] and stopped cloud-config)
console output
task
exec cloud-init-cfg all final

the cloud-config job ran as it is what did the package installation. And seems to have finished:
$ sudo status cloud-config
cloud-config stop/waiting

ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: runit 2.1.1-6.2ubuntu2
ProcVersionSignature: User Name 3.2.0-27.43-virtual 3.2.21
Uname: Linux 3.2.0-27-virtual x86_64
ApportVersion: 2.0.1-0ubuntu11
Architecture: amd64
Date: Fri Jul 27 17:12:51 2012
Ec2AMI: ami-9d2089f4
Ec2AMIManifest: (unknown)
Ec2AvailabilityZone: us-east-1c
Ec2InstanceType: t1.micro
Ec2Kernel: aki-825ea7eb
Ec2Ramdisk: unavailable
ProcEnviron:
 TERM=xterm
 LANG=en_US.UTF-8
 SHELL=/bin/bash
SourcePackage: runit
UpgradeStatus: No upgrade log present (probably fresh install)