Yep, it's not easy removing frets on a RW board and not have chipping. Heat can help, but it's still tough to do. Obviously, if you're going to refret, the small chips are hidden. If not, you'll probably have to do some filling and sanding to achieve a smooth unfretted board. Ditto on the book, it's a great resource.
If you remove the frets, it's true you could see an increase in a bow since the slots then can move. If the bow gets worse without frets, you'll have to fix the neck if you want it to be unfretted.