"Paste As HTML" is another dialog, which is offered in the latest version of RadEditor as well. The content pasted by this tool is pasted with its HTML tags in Design mode. The "Paste HTML" dialog has nothing to do with "Paste As HTML".
My suggestion is to implement yourself the Paste As HTML dialog, because the editor is part of the whole RadControls for ASP.NET AJAX suite and its code is embedded in the Telerik.Web.UI.dll along with the code of the rest of controls. For that reason you cannot upgrade only the editor in your application and buy an upgrade only for it.
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