A lot has happened during 18 months since this thread has been inactive.
For now, we have suspended the iPhone menu, as it does require a lot of custom tweaking and does have issues. The demo was more of a showcase of what could be achieved, yet customer requirements were usually above and beyond that showcase.
Still, Telerik as a company has not abandoned the iOS as a platform. There is the KendoUI Mobile framework -- http://demos.kendoui.com/mobile/overview/index.html
the Telerik team
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