I know I've seen in either a trailer or pre-release screenshot of a villager with his own picture in his house, on his fireplace. Unless they removed it at the last second and replaced them with the posters, I'm pretty sure they would still be in the game.
And then I was able to go into Ed's house a couple of hours later and...
"IT WAS YOU!"
So yes, for those who were asking if villager pictures are still in the game. They are!