I noticed a couple of folks have not yet seen their settings update. Just to clarify: You do not need to install an update to see this change on Windows Phone 8.
There are a couple of reasons you might not see this setting on your phone just yet. As I alluded to in the post, this could take a few days to update depending on region/phone, but… to speed up this change, first make sure you’re connected (either cellular or Wi-Fi is fine), then tap Store, wait on that screen a minute (it’s downloading a configuration file in the background), and then go back to the photos settings to see if you have the new options.
I have tried the country/region setting for Brazil and Australia on a few devices based on the comments here, and had success getting the settings update, so I believe this is just a timing issue.
Hopefully this helps!
These forums really need some quoting code for quoting things from other sources (common example is [quote]your text here[/quote])