No. Don't remove the buds. They are the leaf buds for the new leaves this year. Pinching back spent rhododendron flowers to keep them from forming seed is called deadheading. It is somewhat controversial. Many people swear buy it, but most people don't do it and have no problems. It is supposed to strengthen the plant so it will bloom well the following year. However, don't do it if you are damaging the leaf buds. The leaf buds are right at the base of the trusses. There is a spongy area at the base of the truss. If you can bend that sideways, the truss will break off. If you think you will damage a bud doing that, then don't do it. It is much better to save the new buds than to deadhead.

Here is a link that might be useful: How to care for rhododendrons

Rhodyman, I guess I know about what palnt roniowa talking about, Purple Gem. My personal experience with this plant lead me to say something contrary to your very respected opinion.
I simply LOVE this rhodie and have 7 (seven) of them growing in a different parts of the garden.
First, let me state that deadheading Purple Gem is simply impractical and I can't imagine how one could do that by removing such microscopic spent flowers one by one.
However, if shrub will be left to its own, in 2-3 seasons it will become a very open and I'd say 'empty' with blooms and leaves only at the tips of the branches, similarly looking to leggy 'big brothers' only on a smaller scale.
What I do, simply slightly shear the WHOLE plant right after the bloom and within one month it's full of leaves again and still have time to develop new buds for the next season bloom.

Right or wrong, but it works perfectly with Purple Gem.

Ego45 is entirely correct that it is no trivial matter deadheading dwarf lepidote rhododendrons. However, some people do it. With Purple Gem there is little need to since it tends to be a very reliable bloomer.

There are several dwarf purple lepidote rhododendrons including:

Autumn Violet, Blue Baron, R. fastigiatum, R. impeditum, R. lapponicum, R. mucronulatum var. taquetii, Kirin Seleger, Purple Gem, Ramapo, R. yungningense.

The ones most common in the trade are:

Purple Gem (2',-20F):
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Ramapo (2', -25F):
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R. impeditum (1', -15F)
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Even though the Japanese sheer azaleas, the practice can cause problems. It makes the plant too dense and prevents good air circulation. Rhododendrons and azaleas remain healthiest with air circulation. The best way to prune any of these dwarf lepidotes is to pinch off the tiny leaf buds before they open. R. impeditum is commonly used in bonsai and it is never sheared, but is pruned to resemble a dwarf tree. It becomes a beautiful bonsai, one of the best.

R. impeditum bonsai
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Hi! I bought a Ramapo toward the end of its flowering intending to fashion a bonsai, however over a 3-month period it has progressively lost almost all its leaves and now has only the buds. Scratching the branches still shows a green cambium but I fear the end is near!! I came accross your site by fortunate accident, can anyone please advise me? I have never owned a Rhod. before.

They need excellent drainage. Since bonsai is container grown, drainage is more difficult. You must master the drainage issue to have any success at all.

Poor drainage causes root rot. The plant dies from the bottom up. It is worst in hot weather.

Another need is acidic soil. Also they like a little shade, and protection from winter sun and winter wind, especially when young. They need moderate sun exposure in the summer to form flower buds.

Here is a link that might be useful: How to grow rhododendrons and azaleas.