No, not when there's nothing but a neighbor's accusation. But when there's any real evidence of serious abuse, I think it's necessary. What I would really advocate though, is a system where the child AND the parent(s) are removed TOGETHER to a supervised living situation (i.e. a group home along the lines of assisted living facilities for the elderly, where people have their own little mini-apartments, but there is staff on hand 24/7), until such time as the case has gone through a trial and the parent either absolved or convicted. This would be much fairer to parents who are ultimately found innocent, and much less traumatic to the child, regardless of whether the parent turns out to be innocent or guilty. Given how long our endless "due process" takes, and the incentive for a guilty parent and parent's attorney to strectch it out as long as possible, if the child is still with the parent, the potential harm to a child is just too great.
In this case, the mother "is in police custody after allegedly having Internet correspondence with someone who solicited sex from her and her 4-year-old daughter in exchange for $500", and the tips that she was prostituting her 4 year old daughter came from multiple sources, including the National Center for Missing and Exploiting Children. I don't want a police state either, but I also don't want a state where police leave 4 year old girls in the custody of parents who are reasonably believed to be renting them out for sex with strangers, while criminal court proceedings drag out for months.