I have created a little demo, and selectionBinding is only working when multiple="true" is not set.
Here is the code.
{{view Ember.Select multiple=true content=sampleData
optionValuePath="content.value"
optionLabelPath="content.label"
selectionBinding=testBinding}} // Multi select does not update controller
{{view Ember.Select content=sampleData
optionValuePath="content.value"
optionLabelPath="content.label"
selectionBinding=testBinding2}} // Single select does update controller
Example: http://jsbin.com/ojAvIPA/1