I figured out how to expose the Sampling Mode property of the Simulink RTL-SDR block and allow setting the Sampling mode to use the Direct sampling feature of the dongle.
The Simulink block is in a library, so you can unlock the library and modify the library block so that it will be active for all future uses or in your model you can disable the link so that the change will only be local.
Once you decide which way you want to go you need to expose the Sampling Mode parameter. To do this, right click on the block and select "Mask", then "Edit Mask". This will open the Mask GUI.
In the Mask Gui select the Parameters & Dialog tab.
This will show all the parameters available for the block. Scroll down towards the bottom and find the parameter "Sampling Mode".
You need to make both the parameter dialog and its container visible. To make the parameter visible select the "Sampling Mode" parameter. This will bring up the Property Editor in the right hand pane. Find the Dialog section and check the box for Visible.
Now scroll up and find the folder that contains all the parameters. It is labeled "Parameters". Select it and the Property Editor will open on the right hand side. Again under Dialog check the box for Visible.
Apply changes and hit OK.
Now when you double click on the block in the model you should see a container for Parameters and within that container the Sampling Mode parameter. If you select the drop down box you should see Quadrature, DirectI and DirectQ.
I created a copy of the original block and put it in the sdrrlib library then made my modifications to the copy.