Is there a way to remvoe TestFlight apps from users that have installed them? Also is there a way that TestFlight can bake into the app some sort of password that the users all have to log in with (in case of a lost phone, we don't want our developement apps exposed).
If left untouched, the provisioning of your apps will eventually expire automatically. Even without the native ability to remove applications with TestFlight there is still something of an expiration date on the application.
That would still leave your question of a "baked in password prompt" and removing the application itself physically from the device.
The first part, the app checking for authentication could be solved by implementing a solution with a more robust SDK that happens to have that sort of security-minded approach. As far as I know, and based on TestFLight's feature grid, this exceeds the abilities of their tool.
The second part, removing the application itself from the device, would be accomplished by using a tool that has the ability to use MDM (Mobile Device Management) for device-level control. Specifically you'd want to look for something that can selectively control a single application, rather than having to apply a blanket MDM policy. Again based on knowledge of TestFlight and based on their web page this is also not something TestFlight is capable of.
There are solutions out there that will give you exactly what you are asking about - easy beta testing with the added ability to force the app to check in and re-authenticate as well as the ability to remove applications from the device when you're done testing. If you hit your search engine of choice you can find a few tools that will give you a "yes" to all of your questions here. The list is very short so they're easy to find. :)
If it is at all helpful to you, I am associated with one of those companies, AppBlade, and would be happy to answer questions about this sort of thing. We're at https://AppBlade.com and you're welcome to give us a call or even log into the tool to see how it works for yourself.
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