Just answered my own question, if anyone is interested it is now under Modify -
Templates - Remove Template Mark up,
I just wanted to add a note to your post. Yesterday, I needed to remove the markup from a template or delete it and create a new template. I was unable to do so because "remove template markup" was grayed out. I received the following helpful answer from Robert Heist II. It worked for my issue and it may help anyone who encounters a similar problem:
"All you need to do is detach the index.html file from the template. Then you
can delete the template and start all over.
Go to the Modify menu --> Templates --> Detach from Template"