If he is still looking and replies, I will be glad to help him out. I had to figure it all out myself, and these are the solutions I found. I get help in dnn forums, so I am glad to help out with what I found out if someone else needs help.
Sure, I might have mentioned that you need to have the fonts installed. If you live/work in the west, this would certainly be an issue. If you live in India and use Hindi on a daily basis, you are likely to have these fonts already installed, and you are likely to have the apropriate keyboard driver that produces the UTF-8 codification installed as well. When you install the one, you usually also install the other. In theory, one could even produce a Hindi website without the fonts installed, but the person entering the Hindi text would then not see what he was producing. All that really matters is to get the right UTF-8 codes in place. As long as the visitor to your website has those fonts.
The question was not how to produce Hindi text on a computer, but how to include that in DNN. I have now extensively browsed through the language aspects included in DNN(only to find out that it might take another couple of years and/or maybe another host to make my site fully multi-language). Making the text in a word processor that can produce Rich Text format and then copying it into the editor must have been the intended method to enter complicated unicode encodings. The error I made in the beginning was not to save the texts first to RTF, it seems. I am now that much wiser.
But indeed, to create RTF in Hindi would be difficult without these fonts installed.
The solution to patch the javascript code eliminates the step of copying/pasting and may be a suggestion for the implementation of the localization of the content.
I should maybe have included a warning to use only fonts that you may expect the reader of your site to have on his/her computer or for which the OS can define a proper replacement. But unlike Khmer, support for Hindi seems to have been included in Windows XP (Khmer unicode support was for the first time included in Office 2003), so readers browsing through a Hindi website will likely have Hindi fonts installed and all support needed. What I mean is, he should basically use a font supplied by the OS or one of that font family, so that the browser has a way to default to an available font.