It does not, however, include the images of Jesus Christ and Adolph Hitler, which John Lennon had requested (both were deemed too controversial), nor does it include a planned image of image of Mohandas Gandhi because of fears that it would offend potential customers in India.
However, one person’s image was omitted for the simple reason that they expected to be paid for the use. Who was that?
Answer: Actor Leo Gorcey requested payment for inclusion on the cover, so his image was removed (for those who don’t remember him, his picture is above).
You can find a list of the folks who WERE on the album cover at http://en.wikipedia.org/wiki/List_of_images_on_the_cover_of_Sgt._Pepper’s_Lonely_Hearts_Club_Band