Moreover, even though there is an example of how to wrap text, the feature should be BUILT-IN, not a kludge you have to go through to make text wrap. 

http://docs.telerik.com/kendo-ui/controls/diagrams-and-maps/diagram/how-to/text-wrapping

When would somebody NOT want their text to wrap when it is inside of a shape? That would be an exception to the rule, but the API forces you to do extra coding for the normal case instead of the exception.