@Jeremiah Adams Thanks for the question. If you wish to delete the file in Blob storage, you can do that via Azure Storage Explorer/the portal provided you have the appropriate permissions to that storage service.
This is in fact by design that “unregister” doesn’t actually delete your underlying storage; since an Azure ML Dataset is a reference point to your data in storage, this means we don’t copy your data to your workspace so no extra storage cost is incurred. This also helps safeguard against accidentally deleting files in storage when cleaning up assets in an Azure ML workspace.