I believe I found a limitation in the batch editing feature which doesn't appear to be documented anywhere. I have been able to replicate this using your online batch editing demo at http://demos.telerik.com/aspnet-ajax/grid/examples/data-editing/batch-editing/defaultcs.aspx
The limitation has to do with making changes to text fields that include html markup. For example, in your demo, if I click to batch edit the ProductName column and enter something like '<b>My Product Name</b>', the text is saved properly upon saving the batch edit, and the product name is displayed in bold in the grid. However, if I then go to edit this field again, the full html text is not shown in the editor... only 'My Product Name'. Saving this obviously strips the <b> tags.
It seems the editor is not able to render these tags. I wouldn't expect a simple text field editor to display rich text, but I would expect it to display the actual text as saved in the datasource (in this case '<b>My Product Name</b>'). I'm not sure why the editor strips the '<b>' and '</b>' tags. I tried using the encoded values for these tags (like < and >) and the same thing happens. This basically means that one cannot use batch editing when storing html values.
You may want to emphasize this limitation somewhere so people don't waste there time trying to implement batch-editing solutions for html content. Also, is there a particular reason for this limitation? I can see how stripping script tags would make sense from a security standpoint, but I'm not really sure about other valid html. Is this something that won't be a limitation in the future?