Just tested on live-CD that it's not fixed on karmic. On karmic, /etc/default/avahi-daemon isn't simply created anymore, making it actually more difficult to workaround this problem. But the /var/run/avahi-daemon/disabled-for-unicast-local is still being created and Avahi is disabled.
As usual, adding the avahi-daemon file with AVAHI_DAEMON_DETECT_LOCAL=0 workarounds the problem.
Just tested on live-CD that it's not fixed on karmic. On karmic, /etc/default/ avahi-daemon isn't simply created anymore, making it actually more difficult to workaround this problem. But the /var/run/ avahi-daemon/ disabled- for-unicast- local is still being created and Avahi is disabled.
As usual, adding the avahi-daemon file with AVAHI_DAEMON_ DETECT_ LOCAL=0 workarounds the problem.