This problem occurs on Android 2.3.5
The following jsfiddle illustrates the problem:
I have been using jsfiddle's "Debug on mobile" functionality to test this.
The issue is, when the listview is initialized and the user has scrolled the <input> elements inside the widget glitch when selected. It looks like the focus is going to an element above the one that was tapped.
I ran into something like this before but I believe this is different since this effect does not occur if the listview is not initialized and the app is allowed to run with just a normal <ul>. The css applied to the <li> elements does nothing but it was listed as a solution to a similar problem in the Kendo docs here: http://docs.kendoui.com/documentation/getting-started/mobile/forms
The only reason I post this is because, as I said before. The issue does not occur when running the app without enabling the listview.
*Note: This same problem is present in the latest internal (2.831) version of Kendo.