Can I remove selective models from this file?

It will be tedious: if you remove some models or images, you should remove the matching piece of furniture from the DefaultFurnitureCatalog.properties and/or ContributedFurnitureCatalog.properties files (+ translation files you use if you don't run the program in English), and then update the numeric order of the pieces following the removed one, to ensure there's no missing number between two numbers (piece #1 must be followed by piece #2, then by piece #3...).
An easier way is to reorganize the Furniture.jar file as two .sh3f files by copying its com folder and the content of the DefaultFurnitureCatalog.properties file (then ContributedFurnitureCatalog.properties file for the second .sh3f file) in the PluginFurnitureCatalog.properties file of an empty new .sh3f file. Then you should be able to edit these files with the Furniture Library Editor. Unused 3D models and icons will be removed at saving time.