The new non-gravatar avatar option has been rolled out across the network. Now users can set their avatar image to any image they want to upload.
This minutely complicates matters for handling inappropriate avatars. Prior to this, a moderator would have to add a gibberish salt to a user's email in order to set a random auto-generated Gravatar image. Now, moderators would have to set the configuration to use Gravatar at the same time, or alternatively have to provide an image they can just upload. Not a major change in the hassle, but still a change.
I think that the new system allows for a much simpler process, though, since it already opens the door to storing and providing images for an avatar. Could there be a way, probably just a simple button within "Change Picture", that just sets the avatar to a basic default image? Rather than picking up the image from the upload dialog, just nab it from some pre-existing location and set the image.