For anyone experiencing this as well. PowerShell 3 does not support SharePoint methods. I discovered after installing Powershell v3 that I had to enter another shell using the command powershell -version 2
first before running SharePoint commands, which led me to realize that my VS project was targeting .NET 4.5; Once I changed it to .NET 3.5, everything worked.
I assume that despite the SharePoint libraries targeting .NET 3.5, and theoretically the .NET 4 CLR can handle .NET 2 CLR libraries, Projects with usage of SharePoint 2010 do not support targeting .NET 4/4.5 in any way.
Happy to be proved wrong, of course ;)