The routing framework should allow the developer to choose either the legacy # base routing scheme or the new HTML5 routing and History API. This would make the porting of applications from other frameworks (AngularJS, Backbone, etc) that already support HTML5 routing easier.
Found it. It is called push state. Maybe the documentation needs to be updated to specifically state that this will configure routing to be HTML5 compatible.
I don't see anything in the documentation about not using a hash (#) or hash bang. I do see support for the history api. http://docs.telerik.com/kendo-ui/api/javascript/router
This is available - check the API reference of the router.