Deleting "Products" and updating photos

It seems once a photo is placed in a project I am no longer able to delete or update or even add additional photos. Is this something that I can change?

In addition, before we were able to cut and paste from internet photos (LOVE THIS) we had to create an entry for the product. So my library is full of one time use only photos that I would like to delete BUT I would still like for them to remain on the client mood board.