Delete iPhone app from iTunes - seriously this hard?

OK - I would like to delete an application from iTunes (I know how to do it from my iPhone, but that doesn't cause it to be deleted from iTunes) I downloaded for my iphone that I don't want to use anymore. I know that sounds easy and I would love to have an easy answer.

I have googled this and have still not been able to do it.

So I click on my iPhone in the iTunes sidebar - I got to "Apps" and there they all are.

Some are checked - others not. I would like to delete a few of the unchecked ones - permanently.

Now, before everyone goes crazy and suggests I simply hit the delete key on my macbook, I have tried that - nothing happens.

Under Edit - Delete - it is greyed out, so that isn't an option either.

I have tried dragging the app to the trash - nothing happens.

I can seriously not believe that either 1. I have not figured this out yet and/or 2. That deleting an app is this difficult.

Please tell me it is 1 and how to delete an app.