Yes!  A member can upload any image they like to appear in that spot, in place of the generic placeholder that appears there automatically.

To change the image, click the Profile button and choose Personal Info & Settings, then click the little camera button that appears next to the placeholder image at the top of the page.  Then just choose an image.  

No one will be able to see that image except for the member. If the member has more than one membership, each can have its own profile image.