The problem is definitely just the lack of that setting (as it checks for the setting when deciding whether to display the link in the bottom bar and gives you a no-permission message if you aren't in one of the allowed usergroups), but I can't for the life of me figure out why it isn't being added to your setting list since it definitely is a part of the product XML. I have only tested it on 3.5.4, but it seems very odd that this would have changed majorly since 3.5.3. I have a test board running 3.5.3, so I'll check if I succeed in installing it there...
EDIT: I installed it at my test forum and it worked just fine. Are you absolutely sure you imported the new product?
Incidentally, I updated the template edit instructions. They're pretty much just making the code a little more readable, though, so changing them should not be necessary.
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