Uma solução mais rápida é
DELETE FROM dups a USING (
SELECT MIN(ctid) as ctid, key
FROM dups
GROUP BY key HAVING COUNT(*) > 1
) b
WHERE a.key = b.key
AND a.ctid <> b.ctid
DELETE FROM dups a USING (
SELECT MIN(ctid) as ctid, key
FROM dups
GROUP BY key HAVING COUNT(*) > 1
) b
WHERE a.key = b.key
AND a.ctid <> b.ctid