EDIT: Noticed that I had "editable: false" on all of my Schema objects still, removing this causes a two-way bind, otherwise updates back to the datasource are ignored, but the viewModel itself is still updated.
EDIT 2: This example is hardcoded to grab record 0 from the DS, see the change log link for grabbing specific records.
-----------------
Wrote this quick and nasty, but it seems to be functional.
http://www.kendoui.com/documentation/changes-and-backward-compatibility.aspx
I found this in the change log:
DataSource data contains ObservableObjects instead of raw data records