I think the problem here is simply that killprocs (on entering runlevel
1) kills all Upstart-managed jobs, including Plymouth - so plymouth is
not cleanly shutdown, restoring the console

If you press Alt+F1, or Alt+F7, do you find the sulogin shell?

** Summary changed:

- [Lucid Beta] telinit does not switch runlevels properly
+ killprocs kills upstart-managed jobs

** Package changed: upstart (Ubuntu) => sysvinit (Ubuntu)

-- 
killprocs kills upstart-managed jobs
https://bugs.launchpad.net/bugs/545412
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