You can still delete testcases, but you are right that the delete menu is now gone. This is by design, as deleting a single testcase will also delete all the executions you have with that testcase. Thus, you may loose a lot more data than you intend to.
Now if you really want to delete a testcase, use the issue navigator. Search for any testcases you want to delete and then use the gear icon on the right side of the return column to delete desired testcases.
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