What is the recommended procedure?
Just install Z-Wave binding from PaperUI and then delete the dev binding?
Take a look at this thread -:
The post was not entirely clear how to go from the development binding to the new snapshot binding.
I have been running the development binding almost since it first came to be 
Edit: just follow the instructions. Step 6 covers deleting an old dev binding jar. I still recommend deleting your Things (except the controller) to pull in the new definitions.
In rare circumstances, OH does not uninstall the bundle after the jar is deleted. I’m guessing, but this may only occur if the jar is deleted after OH is shutdown. If this occurs, run bundle:uninstall org.openhab.binding.zwave in Karaf to uninstall it.
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I haven’t deleted my Things just as I didn’t whenever I upgraded the dev binding in the past (i.e. from dev to dev), and as far as I can tell things work fine.
Agreed - this shouldn’t be necessary. Just remove the manually installed JARS and install the new binding through PaperUI.
Wow… I’m very surprised that you would suggest that people continue to use outdated Thing definitions! I guess I can remove a whole section from my test plan… 
Both, @chris’ and my statement were referring to people that used to run the dev version of the binding already, and these should know what they’re doing.
Sure, at times you need to reconsider and eventually rework your whole zoo of functionality and objects, but that’s a different story and not specific to zwave at all.
The thing definitions don’t change that often, and if someone is changing from a recent development build that was manually installed, then it shouldn’t be necessary to delete the things.