I think this feature hasn't come into this release yet. Just look up the source code, in lib/management/commands/create.js, it calls utils.validate_archetype function, which locates in lib/management/utils.js, and then it checks the existence of template files of given archetype, in this case, it is *project*. And if you look up the lib/archetypes folder, only *mojit* and *app* are found. No *project* archetype support yet.
That feature was removed for the time being in anticipation of a new set of tools to support that functionality. Sorry for the confusion due to the documentation. We'll make a note to get that updated.