A better solution to this issue is to get the updated AppFuse archetypes (i.e. ones with the new archetype names, artifactIds etc) directly from a remote catalogue. To do this:
In your STS or Eclipse IDE, select the "Window" -> "Preferences" menu item.
On the Preferences screen, expand the Maven node in the leftPane's treeview.
Under the Maven node, select "Archetypes".
Click "Add Remote Catalog..." button, on the rightPane.
In the "Remote Archetype Catalog" dialogBox, specify the catalog url and description, by entering "https://oss.sonatype.org/content/repositories/appfuse/archetype-catalog.xml" for Catalog File, and an appropriate description (e.g AppFuse archetypes from remote catalog).
Click "Verify..." (this probably contacts the remote url and downloads+enumerates through the list of archetypes found) and then click OK.
Finally, click "Apply" and "OK".
After doing the above steps, when you create a new Maven Project, on the "Select an archetype" screen of the wizard, you can then select your newly added catalog on the catalogs dropdown list, and see all the available archetypes downloaded from the remote url. Pick your required archetype and it will successfully create the project, without the above issue.
NOTE: I am using Eclipse 4.3 (Kepler) for JavaEE, with m2e plugin installed.
For detailed analysis of the issue, and steps to fix it including screenshots, see my blogpost at http://www.obinnakalu.blogspot.com/2013/09/a-solution-for-fixing-broken-maven.html