I have always believed in a creating a strong community, and this just cannot be done with out letting users upload pictures. Usually one of these pictures serves as an avatar for the player in the forums, message system, etc. Although this is probably not true to the word 'avatar.'
For use in the game, often the representation of the player's character(s) are created by the system. You can choose if you want to give the player options or not (different clothing, skin color, etc.) but in the end the game creates the player's image, usually with the weapons and armor appearing on the player.
I think an important thing to take into consideration is how much information you want to display. If your weapons/armor have a lot of different stats, it may be better to have these pictured off to the side next to their data. If the equipment are just modifiers, it's probably okay to display them right on the page with a tooltip.