How do you remove already set rivets?

Watch the eyelet if you're gonna drill. If it starts spinning it'll melt the Kydex around it. Personally I just use a pair of needle nose pliers and break the fold.

ETA: Just realized you may be talking about leather rivets. If so, I'm single minded, so feel free to ignore.
 
I have these cone-shaped cutters for my Dremel, they do the job real quick.
 
Here's the two I use for stuff like that....
 

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