When I bind an ItemsSource of a ListBox to a List the binding engine holds on to the list elements after the control is gone. This causes all the list elements to stay in me
I had a look at your example with JustTrace memory profiler and apart from an obvious question why would you kill view model / nullify DataContext and leave view running (in 99.9% of cases you'd kill View and DataContext - hence ViewModel and Bindings go of of scope automatically) here's what I found.
It will work fine if you modify your example to:
Above modifications prove you can safely use IEnumerable/IEnumerable in binding. BTW, Person class doesn't need to implement INPC neither - TypeDescriptor binding/Mode=OneTime don't make any difference in this case, I verified that too. BTW, bindings to IEnumerable/IEnumerable/IList are wrapped into EnumerableCollectionView internal class. Unfortunatelly, I didn;t have a chance to go through MS.Internal/System.ComponentModel code to find out why ObservableCollection works when setting DataContext = null, probably because Microsoft guys did a special handing when unsubscribing from CollectionChanged. Feel free to waste few precious lifetime hours on going through MS.Internal/ComponentModel :) Hope It helps