OK, it seems that axis needs to be restarted to make this happen, but it does. I.e., when the switch is closed, it is possible to enable the stepper motors, at least according to the icons. I have yet to test whether there is an actual enable signal coming out of the board, but before the watchdog bites, the LED for the output turns on. This seem like a good thing.
I have checked the invert checkbox for the ESTOP input so that the rest of the logic functions correctly. So, progress.
Thanks. Now to figure out what causes the watchdog to bite. It could be that I have this web browser open. Average ping delays of about 0.5 ms probably don't help either, but I can't imagine how to make them better.