When setting IsEnabled through binding, it does not work on items level, it works on toolbar level. Still the Isvisible property works on items level.
<telerik:RadToolbar x:Name="toolbar" >
<telerik:ToggleButtonToolbarItem Text="ToggleButton" IsEnabled="{Binding IsActive, Mode=TwoWay}">
<telerik:ToggleButtonToolbarItem.ImageSource>
<FontImageSource Glyph="{x:Static telerik:TelerikFont.IconBold}"
FontFamily="{x:Static telerik:TelerikFont.Name}"
Size="16" />
</telerik:ToggleButtonToolbarItem.ImageSource>
</telerik:ToggleButtonToolbarItem>
</telerik:RadToolbar>