Just wanted to check the correct method for removing a DP in ConfigMgr 2012...is it the same as CM 2007 where you have to first remove each package that houses content on it then the DP can be safely removed or if I remove the DP will it automatically remove the DP as a content source for all applicable packages?

Removing a DP will automatically remove all content associated with it.

Ok so just to be clear - if I remove a DP that DP will be automatically removed from any packages that are using it as a content location? In contrast to ConfigMgr 2007 where there'd be orphaned locations left associated with the packages.

Yes.