This dialog box also allows to remove user-defined element templates. In order to do this, simply click on a template in the "Existing element templates" list and then click on the button.
Note that this operation takes immediate effect: clicking on the Save Selected Element As Template" dialog box will not cancel the deletion of the template[24].
button of the "You can only remove the element templates you have created. You cannot remove predefined (grayed) element templates.
In the above screen shot, notice how removing user-defined "table(simple)" template would restore the predefined template having the same element name and label.
[24] The button of the "Save Selected Element As Template" dialog box just cancels the action of creating a new template.