Yes it should be removed and its usually no more complicated then a spay. sometimes the testicle is close by so they don't even have to make a second incision, but sometimes its hiding so they need to make another incision to search for it. however since these guys are tiny its usually not that hard to find. some of the vets i worked for said they thought small dog spay/neuters were easier because everything was right there and they didn't have to dig around. personally i don't think an over night stay is necessary and i would want to take him home. usually nobody is there at the hospital to monitor the patients in a general practice so i don't see the point.
also i do not agree with being able to let it go until 5 years of age. i've seen tumors form and wrap around organs because of an undescended testicle at a younger age. it may not be cancer but it still can cause a huge problem. if it grows and wraps around other organs it can cut off important blood supply to them and the organs/tissues can die.
Best to do the neuter before a year old just to be safe. I'd still do it at 6 months old like i would any other neuter.
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