I only have SMF 1.1.15 forum software (not 2.0.1 that is running on here), but this still works, ie adding a regular user, I still get the ability to specify a URL for an avatar.
If I change the permissions & un-tick:
Select an avatar from the server
Upload an avatar to the server
Choose a remotely stored avatar
Then all I get for my regular user is Personal Text etc.
Perhaps a permissions problem on this board. I can only think that Elite Club members are in a different group to regular users & the regular users need the permission setting. I may be totally wrong, but that's my 2 pence worth & I'll shut up now.