Yes, his points will get restored if you remove the RS.
Yes, you can then put the RS on another player (whether they accept it will once again be up to them).
Often it can be worth the extra year even if a guy drops ten points. I did it with
this guy and didn't find it to be a bad decision. Ten points of WE will be made up by the extra year in my opinion. I also didn't want to risk no one else accepting the RS and not being able to use one, because I find the RS to offer such an advantage that I hate not using it.