The ItemsControl has a protected member IsItemItsOwnContainerOverride which is passed an object from the items collection and returns true if that object can be added directly to the items panel without a generated container (and thereby be templated).
I'm just speculating here, but I would bet that it's behavior that lives inside of the ItemContainerGenerator. I'd bet that the ItemContainerGenerator looks at an item, and if it's a UIElement it says, "cool, the item container's been generated, I'll just return it" and if it's not, it says, "I'd better generate a container for this item. Where's the DataTemplate?
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