Explain again why you have workbench.library and icon.library in kickstart.
I can think of one good reason - backwards compatibility with existing floppy based software (even some games).
Without those two library's these disks would not boot anymore...they would hang as soon as the LoadWB command is run and a requester saying something like "Unable to open workbench.library" would appear. Same goes for icon.library. It would only serve to confuse users...
Nothing should be taken out of Kickstart. Nothing extra should be included either for the same reasons, but updating/optimising the versions of the software modules within the Kickstart seems perfectly okay to me.