SSMS 2014 "Deploy Database" feature has old SQL Azure settings
I wouldn't have been able to find the solution to this problem if you hadn't decided to open the VM on azure and check the version numbers, so thank you!
After I saw your post, I googled "sql 12.0.2430.0" and found a hotfix from microsoft that fixed the problem.
You can find the hotfix Here
The update added full support for the new Azure SQL database tiers.
Cheers!
Use SSMS 2014 SP1. That works. Currently.