gdixith: You would be correct. It was added as a hidden pref as of 4.2.1.2 (released Feb. 17, 2006), and then it was added into the actual settings window in the place you described as of 5.0 (May 10). But anyway, I can't really imagine anyone who'd want to remove the Local Install menu icons (btw, RaveN, the MR in the extension title are actually his initials, rather than a Mister) who wouldn't want to just go ahead and use the "deiconify menus except bookmarks" script already posted here (which removes those plus any menu icons added by other extensions as well).
I think this option is already included in Mr.Tech Local Install (5.0.3) options window => menu options => Miscellaneous tab and then check hide local insall menu icons
XerBlade said about Remove MR Tech Local Install Menu Icons on May 25 2006
gdixith said about Remove MR Tech Local Install Menu Icons on May 25 2006