I saw a WP site that had users fill in their basic info and then it directed them to upload and Avatar. The site looked nice because most users had a picture even if they were’nt registered with Gravatar.
Is there a plugin for this local Avatar upload?
Try this plugin, it adds a upload avatar in the profile edit page.
http://wordpress.org/extend/plugins/user-avatar/
You can take a look on this plugin Profile Builder that allows the users to upload their avatars on their registratration, and you can even build your own registration form.