Views argument settings Views 2 for Drupal 6 had settings for the arguments passed to a view.
Does Views 3 for Drupal 7 still have those settings? Have those settings been renamed, or removed?

This is the partial screenshot that I see when I edit the taxonomy term view (the screenshot appears blur because I resized it to 70% of its original dimensions).

If this makes any difference, the screenshot is for the development snapshot of Views (7.x-3.x-dev), used together the development snapshot of Chaos Tools (7.x-1.x-dev).
The argument settings have not been removed; they have been renamed, and in the actual development snapshot they are called Contextual Filters.