The current avatar is derived from the public key, so there’s no need to upload anything to a server. We’re considering adding support for custom avatars—allowing users to upload their own to a server or relay—but we have some reservations and are still exploring better alternatives.
Discussion
I appear to be a female punk with purple hair so hoping this happens.
Another question, if I have a chat with someone that is NIP-17 and I want to move to Signal, what do I do? In security settings there's an option to reset Signal session, is that a bug (there's nothing to reset, it's not Signal) or will that convert it to a Signal chat? Or do I start a new chat with the same person, and can I even have 2 chats at once, one signal and one NIP-17? Thanks.

If your chat partner is also using Keychat, you can click “Reset Signal Session.” Once they reply, the conversation will switch to the Signal encryption scheme.