I would love to find an answer to this also. I have the same output you do. I can get arecord to think it's recording, at least not throwing an error. But it doesn't record anything.
arecord -f S16_LE -V mono -D 'hw:1,0' test.wav
It's like the input is muted. Or it's recording the wrong device, perhaps the audio mix (output). I played with all the settings in my alsamixer but still no audio in my recording. If I play a file with aplay, while recording with arecord, I do get that sound on the recording! So I think it's recording from the wrong device. But I get an error (arecord: set_params:1297: Unable to install hw params
with all the other listed devices.
arecord -f S16_LE -V mono -D 'hw:1,0' test.wav
It's like the input is muted. Or it's recording the wrong device, perhaps the audio mix (output). I played with all the settings in my alsamixer but still no audio in my recording. If I play a file with aplay, while recording with arecord, I do get that sound on the recording! So I think it's recording from the wrong device. But I get an error (arecord: set_params:1297: Unable to install hw params
with all the other listed devices.