Yes, if you no longer need vista, the recovery partition is useless. That partition is put there by large OEMs like HP, Dell and Lenovo to enable the customer to recover to factory-default state should something go wrong with the installed OS (Earlier, OEMs used to provide recovery disks but very few like Dell and Gateway do so now). It operates in conjunction with a Function key like F10, although the recovery can also be carried out from within Windows such as by using HP's Recovery Manager.
FYI, the recovery partition you have right now can still be used to re-install the factory vista your machine came with by marking it active in the Disk management window in Win7 and then re-booting, again a key like F11 may be required. It is advisable to make recovery CDs before wiping out Vista, IDK whether you did that. It is also advisable to backup your vista activation with a utility like Orev's ABR tool, IDK whether you did that either. In any case, if you dont intend to use vista any more, it'll be safe to wipe that partition.
There is no straight forward way to make an OEM type partition for your current OS, however you can use Acronis to image your system.