It turns out when I opened the Web Platform Installer to install the latest SDK, the item that said "...SDK... - Latest" wasn't the latest, but the February 2013 (1.8.1) update instead of the 2.0 SDK. I ended up uninstalling all Azure SDK's, restarted the machine and tried again.
This solved the issue and I was presented with a new option to install the 2.0 SDK. The trick was to uninstall all (including any PowerShell cmd's) Azure related products I could find in Product and Features (Win 8).