"Delete front panel terminals from diagram" was/is an option available in LV6.x (Tools>Options>Block Diagram). I think the default setting for it was unchecked.
Enabling the option is a matter of personal choice. I found it clashed with old habits when editting the block diagram. Right clicking any terminal on the diagram, selecting "Find Control/Indicator, hitting delete works well as an alternative.
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Fading out. " ... J. Arthur Rank on gong."