You don't have to reinstall your os just to remove a partition.
Use disk utility (it's in utilities under applications)
You can remove the partition there, just make sure it's the time
machine one and not the one you boot from, or you really will have to
reinstall.
After that's gone, you can create a new one, (or if disk utility
supports it) reexpand your existing partition to use the space left
blank by the removed partition.
Personally, I'd say leave it there, and just mount it somewhere on
your file system (maybe under applications or users) to remove your
applications data from your user data.
Or, install another copy of osx on it (perhaps snowleopard) so that
if lion gets hosed completely, you can still boot to something else
to fix it.
Of course, these are not applicable if you're not interested in doing
any of those things.
I tend to try to support maximum options, so my setup is not
generally a simple 1-partition configuration. *grin*
Anyway, hope this helps.
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