RadGrid does not cache any data it is bound two. There are many reasons for this, 2 of the most important being:
1. Where to cache? Caching in the ViewState is a performance nightmare. Caching in Session can be problemmatic for many users and large data sets.
2. How to provide concurrency? What happens when a piece of data is updated outside of the grid, but the grid keeps rebinding to stale data from the cache?
Still, if you believe caching data suits your needs, it can be implemented relatively easily by the developer, so I believe this is more or less out of scope for RadGrid.
As for setting AllowPaging from RadGrid's object, I do not seem to observe any differences. Both approaches seem to work OK. Attaching sample page used for testing.
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