The following sketch causes the LED to go fully bright, then dim (analogWrite(50)) then stay dim, never returning to 5 volts.
The sketch does work as expected in the Arduino 1.0.1 IDE.
void setup()
{
pinMode(11, OUTPUT);
}
void loop()
{
digitalWrite(11, HIGH);
delay(500);
analogWrite(11, 50);
delay(500);
}
Tested using a Sparkfun Redboard and a 2.7v LED.