That's what I thought, too, but before posting that advice last night, I went on Craigslist to check. It turns out that the the word Remove is beside only the top word on the list. When you click on it, it removes the top word and itself. You then have to go back to what you were typing in the Search box, delete it manually, and begin typing the next word on the list. Type a few letters, the list drops down again with Remove beside the top word. Repeat. It was slow enough to make me decide to put up with the list.
I also tried deleting the highlighted word on the drop down list. It doesn't delete. When I clicked on a different word on the list to see if I could delete it, it didn't delete, either, but clicking on it put it up in the search box. Then it had to be deleted from there.