Pass the ManagedObjectReference(MOID) for both HostDatastoreSystem and Datastore( not the datastore name).
<soap:Envelope xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:soap="http://schemas.xmlsoap.org/soap/envelope/">
<soap:Body>
<RemoveDatastore xmlns="urn:internalvim25">
<_this xsi:type="HostDatastoreSystem" type="HostDatastoreSystem">datastoreSystem-200</_this>
<datastore xsi:type="Datastore">datastore-20</datastore>
</RemoveDatastore>
</soap:Body>
</soap:Envelope>