Hi Rick,
This behavior is controlled by the browser itself: when any contenteditable element (including the Kendo UI Editor) loses focus, the browser automatically removes the visible selection highlight.
But thank you for logging this idea in our feedback portal. I have added a Vote by your account.
Regards,
Eyup
Progress Telerik
Love the Telerik and Kendo UI products and believe more people should try them? Invite a fellow developer to become a Progress customer and each of you can get a $50 Amazon gift voucher.