odd. ok it is coming back as a point. Which is good. You are setting the point with a textsymbol properly.
however when you pass that to
editToolbar.activate(Edit.EDIT_TEXT, selected);
i get the
[esri.toolbars.Edit::activate] Unable to activate the tool. Check if the tool is valid for the given geometry type.
Which is why you cant close it, because it wasnt properly created.
What I can't figure out is, why not? it looks like everything is fine.