You can use a Kendo UI DataSource as part of a MVVM viewModel, however you will not need the dataSource for populating a form. I would suggest you to check this example, showing source and template binding with MVVM:
And here is another example that shown a form bound to viewModel:
Please note that if you decide to go with a template, you cannot bind directly a DataSource to it.
Join us on our journey to create the world's most complete HTML 5 UI Framework - download Kendo UI