I've been using Kendos MVVM wherever I can, it's such an elegant way to render a javascript object. So as of Q1 2014 here comes along this amazing new sortable widget! It's just so badass...
Problem is I didn't see an MVVM demo. So after talking to support (really, the developer)...he said the widget was created to modify the DOM not be a fully bindable widget to replace the grid\listview\etc; this widget is to be like a LAYER on top of those.
So I crafted up this JSBin which seems to work...kinda have to handle the sorting\ordering manually...perhaps this can be made into a plugin or something....however...she does work :)