Personally I'd like to see the avatars cleaned up a little. Some of them are over the top IMHO. And no, I don't want to turn off all avatars. Maybe if I could do it easily on a per user basis, but as it is it was a pain to block the ones I have and every time someone changes theirs I'm going to have to update my block list.
There's really no good reason for them that I can see. We've got the babe thread already and it's got a lot higher res versions than a tiny little avatar.
That said I doubt anything is going to change. It's too hard to police that sort of thing (for instance, Darth Beavis' avatar - disgusting, but inappropriate?).