All you have to do is delete them (rt click) from the desktop 1.7.x application OR delete them from "I'm Reading" on the website and they will leave your reader forever (unless you want them back, in which case you bookmark them from your purchased list and sync them all over again). I tend to save ePUB copies of everything, anyway, just in case.
You can also use Calibre to delete books from your reader--but if they remain in I'm Reading on the web, they will reappear.
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