How do I upload a photo without using Gravatar?

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It's possible, http://askbot.org/doc/optional-modules.html#uploaded-avatars, you need to install a module manually. The reason for that is - the current version of django avatar module in the python module repository is outdated and we need to use one from the source code.

I think this is a serious liability for a community site. Most people are not going to take the extra step of going to register with Gravitar. I realize this system is working for some of the more technical forums, but regular non-technical people won't take the extra time to go to another site and register.

the answer is - yes it is possible, with just one more simple setup step. Agreed, gravatar is a little too nerdy, plus it won't work on the intranet.

okay, so i was wrong that it's not supported; but i agree with the sentiment here; it'd be nice if this worked out of the box by default.

+1 for this feature into core