Hey Erin - Yes, that's about right... click on the user, revoke their license, then you'll want to click on the "Issue License" button and basically re-issue them a new license (they'll be sent a new invitation to click-through and install from there.)
I've recently removed my templates from Sales Insight (in the process of re-vamping these right now), so I can't reference if mine are available or not however, seems like Drew S. might have encountered that as well. His note from above: "Also, none of my templates seem to be available to the reps after the new install."