The javadoc says that this method will "Delete the named Dataset. If no dataset with the provided name exists, a DatasetNotFoundException is thrown."
However, the precise definition of "delete" is unclear. As someone who already has plenty of experience with Hadoop and Hive, I could make an educated guess about when "delete" means "only metadata will be removed" and when it means "both data and metadata will be removed." If one of the goals of Kite is to simplify adoption by Java developers who know little about Hadoop, however, then a little more explanation would be helpful. The penalty for guessing wrong could include permanently removing all your data when you didn't expect it.
(On a side note, it seems confusing that the 'Project' for the JIRA is CDK when the project is named Kite...I understand the history, but a newcomer would not)