Hello Jeff and NS,
The issue that Jeff is talking about is due to the fact that the RadCarouselPanel tries to fill all slots on the path - for example, if the RadCarouselPanel has only 5 children and it is displaying all 5 and you try to move its items it will ignore the command because there are no more items to display. This limitation will be addressed in the upcoming releases.
The feature that Jeff is proposing is on our to do list and it will be introduced in a future release.
Thank you both for the great feedback.
All the best,
the Telerik team