You can remove "Blogroll" via the Admin panel.
Basically once Blogroll's links are removed, the Blogroll catetory listing will not display.
I have opted not to delete the Blogroll's links but instead to "keep the link private". Therefore the information is still accessible in the admin panel but will not be displayed on the Blog.
1. Open Admin panel.
2. Click on Links.
3. Hover mouse over any of the links listed. This will display Edit | Delete.
4. Click on Edit of the first link "Development Blog".
5. Place a checkmark in the box: Keep this link private (located on far right side).
6. Update link.
7. Repeat for all of Blogrolls links.
8. Open your blog, refresh, and note that Blogroll is no longer listed.
9. To add a new Category:
10: Open Admin panel
11. Click on Links
12. Click on Link Categories
13. Add Category Link name, slug, description.
14. Click Add Category. It will be listed in the panel immediately to the right.
15. The new category will not be displayed on your blog until you add a link to it.
16. So go to Links - Add new - enter new link info
17. Select the Category you just created.
18. Click Add link.
19. Refresh your blog.
Hope this helped.