Our implementation is simple. We use a bound value that implements a parser/formatter, which is only supported on the ngModel attribute. In short, the date format that Kendo wants is not the format we store the data in, so we use the formatters/parsers to manage manipulation on each side of the binding. This is a pretty standard use case. I'm pasting my reply to a similar issue below because the root issue is the same. Telerik should REALLY consider providing an override, or reverting this functionality.
This FUNDAMENTALLY changes your Angular "support". You use Angular directive attributes as part of your supported implementation (k-whatever), so one would more than reasonably assume that using basic angular directive attributes alongside Kendo would work as well. We're seeing all sorts of problems throughout our application because of this change, and no noticeable increase in load performance. In fact, the perceived load time is slower, because now instead of the initialization waiting until the basic DOM has been rendered, the Kendo JS begins rendering while there are many operations still occurring.