You can check to see whether or not Classic is installed on your iBook by opening the Classic Pane in System Preferences. If you have a newer Mac it probably isn't installed; instead, you'll find an installer for it on the bundled Additional Software/Hardware Test CD. Also note that copying a System Folder from another Mac works just as well as installing a new one.
Now, can you delete Applications (Mac OS 9)? Why certainly you can. Do you want to? If you have absolutely no need for whatever OS 9 applications may be in that folder, then delete it. You may want to have a look at what's contained therein first. I myself have a few applications that I still need but don't plan on upgrading, so I keep them and my System Folder around. You may want to keep Classic around for that old, rare application you happen to come across. But if you simply don't want it around, go ahead and remove every trace of OS 9 from your system.
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