Red Dot Removal

Nah, don't use a knife, since it's likely that you damage the finish.
Instead you use two toothpicks. Since the Leica or Leitz inscription is embossed you can use the toothpicks to twist back and forth the dot. At first nothing seems to happen, but after some time the glue used to keep it in place will surrender.
That way you will not damage the camera nor the dot.
 
The red dot covers an access hole for rangefinder adjustment. Were you wanting to do the adjustment, or is this for cosmetic reasons? If the latter, the "in" thing is to cover it with black tape. There are a few people out there who meticulously paint them black. I read that Leica is now selling black dots for those who don't like the red ones.

Edit: I wonder if it could be peeled off using a very sticky tape, like duck (duct) tape?
 
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unless the camera is also black paint, i would stick with the red dot. glossy black dot on black chrome...ew.
 
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