Instead of applying a transform for every RenderObject, pass down an Offset for where to paint.

sky/sdk/lib/example/rendering/touch_demo.dart

 // Copyright 2015 The Chromium Authors. All rights reserved.
 // Use of this source code is governed by a BSD-style license that can be
 // found in the LICENSE file.
 
 import 'dart:sky' as sky;
 
 import 'package:sky/rendering/box.dart';
 import 'package:sky/rendering/object.dart';
 import 'package:sky/rendering/paragraph.dart';
 import 'package:sky/rendering/sky_binding.dart';
@@ skipping 15 matching lines @@
   Point position = Point.origin;
   double radius = 0.0;
 
   Dot({ Color color }) : _paint = new Paint()..color = color;
 
   void update(sky.PointerEvent event) {
     position = new Point(event.x, event.y);
     radius = 5 + (95 * event.pressure);
   }
 
-  void paint(RenderCanvas canvas) {
-    canvas.drawCircle(position, radius, _paint);
+  void paint(RenderCanvas canvas, Offset offset) {
+    canvas.drawCircle(position + offset, radius, _paint);
   }
 }
 
 class RenderTouchDemo extends RenderBox {
   Map<int, Dot> dots = new Map();
 
   RenderTouchDemo();
 
   void handleEvent(sky.Event event, BoxHitTestEntry entry) {
     if (event is sky.PointerEvent) {
@@ skipping 13 matching lines @@
           break;
       }
     }
     markNeedsPaint();
   }
 
   void performLayout() {
     size = constraints.biggest;
   }
 
-  void paint(RenderCanvas canvas) {
-    Paint white = new Paint()..color = const Color(0xFFFFFFFF);
-    canvas.drawRect(new Rect.fromSize(size), white);
+  void paint(RenderCanvas canvas, Offset offset) {
+    Paint white = new Paint()
+        ..color = const Color(0xFFFFFFFF);
+    canvas.drawRect(offset + size, white);
     for (Dot dot in dots.values)
-      dot.paint(canvas);
+      dot.paint(canvas, offset);
   }
 }
 
 void main() {
   var paragraph = new RenderParagraph(new InlineText("Touch me!"));
   var stack = new RenderStack(children: [
     new RenderTouchDemo(),
     paragraph,
   ]);
   // Prevent the RenderParagraph from filling the whole screen so
   // that it doesn't eat events.
   paragraph.parentData..top = 40.0
                       ..left = 20.0;
   new SkyBinding(root: stack);
 }