The cases of the first characters in the property descriptions in the create-jmsdest man page incorrect. The create-jmsdest man page lists an example property as useDMQ.
However, this property is wrong, and for it to actually take effect you must use UseDMQ. According to Destination Configuration in Oracle GlassFish Server Message Queue Developer's Guide for JMX Clients, the properties seem to be case sensitive.
However, if you use imqcmd create/update dst, the lower case useDMQ is correct, as listed in Physical Destination Property Reference in Oracle GlassFish Server Message Queue Administration Guide.
This issue has also been raised on the GlassFish Forum.
Further, when viewing the JMS Physical Destination in the Administration Console, it doesn't correctly reflect the status of the Use Dead Message Queue property, as it is always true (you can change the property correctly, but the web page will always show true regardless of the actual value).