Actually this is expected and it is by design. Calling ShowInsertItem method is not firing a command therefore ItemCommand event will not be raised. However, generally speaking, executing the same code as in InitInsert command handler, before calling ShowInsertItem should act the same, as when RadListView handles this command, it will call ShowInsertItem method internally.
the Telerik team
Do you want to have your say when we set our development plans? Do you want to know when a feature you care about is added or when a bug fixed? Explore the Telerik Public Issue Tracking
system and vote to affect the priority of the items