Eclipse 3.7 Indigo has integrated Maven m2e plugin but is missing some expected functionality which was previously present in Sonatype releases by default. If you want your Maven Console to show something you must also install the optional "m2e - slf4j over logback logging" plugin.
When installing the m2e plugin there is an optional feature "m2e - slf4j over logback logging" which is needed for the Maven Console to work. Without it the plugin produces no output to Eclipse's Maven Console view so that it is impossible to track plugin's activity (background maven builds, source and javadoc downloads, etc).
There is a bug filed about it but it is resolved with comment "As a tool, m2e is not in the position to impose any specific slf4j logging backend on the host Eclipse installation." That seems kinda strange as without the optional component the plugin is missing useful parts.
Just "Install new sofware > Indigo > Collaboration > "m2e - slf4j over logback logging (Optional)" and your Maven Console is back in business.