Can vswif1 (service console 2) be safely removed on the fly and with no effect to vmk (iSCSI) ?
Why yes, it can be removed, since the iSCSI traffic is headed by the VMKernel TCPIP stack, it should not be affected by removing the service console. However, it is safe to have confirmed that the vmkernel portgroup vmk1 is having the gateway configured properly and does not get lost in the middle when the vswif1 is removed.
Also, when you are removing vswif1 from vSwitchB, why are you creating vswif2 [naming] in another switch instead of vswif1[naming] itself?