in case that something in test fails before Arquillian is fully initialized, JUnit reported might get reports that corresponds to no actual code being executed - hence they are always passing. I suggest to run your test with -Darquillian.debug=true which should provide an output that should show what went wrong. Please post the output it here if the error would not be obvious from there.
Thanks for the suggestion. Created the debug log, but I can't tell what could be wrong based on it. Test does seem to execute. Log is available here: https://dl.dropboxusercontent.com/u/2989393/arq-debug.log.
Are you using Arquillian 1.1.4.Final?
It is a known bug that if your test fails because it cannot be cleanly deployed all tests are green.
In this case it should get better if you go back to arquillian 1.1.3.Final.
Yes, this was 1.1.4 Final and though the test was cleanly deployed (I examined the resulting WAR file and it was correctly built, dependencies were found) going back to 1.1.3 solved the problem. thanks.