The current drop-down list works great. However, in situations where the options are hierarchical there are (at least) two obvious solutions.
1) Have two drop-down lists (perhaps with some js altering options based on selections).
2) Display a tree of options from the drop-down. (much like a menu)
Here is an example of #1
http://www.jgeppert.com/jquery-doubleselect/
Here is a very good example of option #2
http://www.givainc.com/labs/mcdropdown_jquery_plugin.htm
The advantage to #1 is that you can easily fire off js after selected options.
The advantage to #2 is that you can determine all available options on the server and return a structure for rendering. Also, #2 does not take up more screen real estate.
I think addressing these interface scenarios would help Kendo become even more usable than it already is.
Thank you.