Thanks for your reply. I would personally bump this up on the list, the ideal place to run these tools (both backup and restore) is in the Azure environment.
It would open the door to lots of automation scenarios, ones that perform much better than the DAC Import/Export services.
(They took a strange route there.)
I did try the SQL Server 2008 R1 SP1 Express approach as well, that fails with:
Method not found: 'Microsoft.SqlServer.Management.Common.DatabaseEngineType Microsoft.SqlServer.Management.Common.ConnectionManager.get_DatabaseEngineType()'.
This applies to both SQLAzureMW and the 2 batch tools.